Hopewell Ltd had 1,000 units of inventory on hand at the beginning of the year worth $4,000. During the year they purchased 15,000 units at $4.25 and 10,000 units at $4.40. They sold 24,500 units during the year at an average price of $7.50 and pay taxes at 25%. 1. If Hopewell uses the average cost assumption for inventory valuation: a) What would be the ending inventory value at year-end? b) What is their gross profit for the year? 2. Hopewell has a bank loan outstanding, the size of which is related to the company's inventory. If prices are rising which cost flow assumption would management most likely prefer? 3. For its next fiscal year end (not the current year end) Hopewell Ltd is considering changing to the FIFO cost flow assumption. How will this impact financial reporting