General Motors uses the last-in, first-out (LIFO) method to value their inventories. Honda (of Japan) uses the first-in, first-out (FIFO) method. a. How will the balance sheet inventory amounts differ between General Motors versus Honda? How will the cost of goods sold differ between General Motors versus Honda? In your opinion, which balance sheet amounts would be more relevant to financial statement users in making decisions to buy or sell shares of a company's stock and why? b. Discuss the concept of conservatism. In your opinion, which is more conservative, General Motors or Honda in times of inflation? Explain from a balance sheet approach and an income statement approach. 2. Review the concept of continuity. a. How did Sprouse and Moonitz describe continuity? b. Given the presumption of continuity, if you are planning to buy a business would the historical costs of the company's assets be relevant to your decision to invest? Explain your answer. c. Given the presumption of continuity, if you are planning to buy a business would the market values of the company's assets be relevant to your decision to invest? Explain your