Exercise 2 (12 points) Presented below is information related to Rembrandt Ind's inventory: per unit Skis Boots Parkas Cost $195.00 106,00 52.00 Selling price 212.00 165.00 73.75 Cost to sell 19.00 8.00 2.50 Cost to complete 32.00 29.00 21.25 Determine the following a) the net realizable value for each item, and b) the carrying value of each item under LCNRV. Part B -Short answers questions (20 points, 10 points each) 1. Define the following terms: a. Financial flexibility b. Share capital. Part C-Multiple Choice Questions: (10 points, 5 points each) MCQ 1 Shelton Company has the following account balances at year-end: Accounts receivable 80,000 Allowance for doubtful accounts 4,800 Sales discounts 3,200 Shelton should report accounts receivable at a net amount of a. 72.000 b. 75,200 C. 76,800 d. 80,000 MCQ 2 AG Inc. made a 10,000 sale on account with the following terms: 1/15, n/30. If the company uses the gross method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? a. Debit Accounts Receivable for 9,900 b. Debit Accounts Receivable for 9,900 and Sales Discounts for 100 c. Debit Accounts Receivable for 10,000 d. Debit Accounts Receivable for 10,000 and Sales Discounts for 100