HTS 6-1 CAECK FIGURES: 2a. Profit =$75,000;2b. Profit =$79,000 The owner of Fardan Stereo Sales showed the following adjusted trial balance at December 31,2020 ; CMAPTER 6 inventocy Costing end Maluation The owner. Mikel Pardan, is analyzing the effect of the various merchandise imentoty costing methodit sa sa financial statements and has prepared the following schedule: Required 1. Calculate the merchandise inventory values at December 31, 2020, under each imventory costing timesoc shown in the schedule above. 2. Prepare a single-step income statement (dhowing one line each for net saler, cost of goods sold, operatiof expenses, and interest cxpense) for the year ended December 31.2020, along with a balance sheet ix December 31,2020 assuming: a. HEO b. Moving weighied average Artalysis Component: 3. Doe the schedule above reflect rising costs for merchandise inventory or falling costs? Explain how you knore. 4. Based on your reales in Part 2, which method should the ovmer use if he wants to: i. Muxinilze profit? b. Muximiae assets? HFS 62 Reguired Answer the following questions. a. What are the nuo calcgoties of inventory that Spin Master has? (Refer to the notes to Spin Master's finascial statements in Appendix 11 at the cnd of the textbook.) 6. Tefer to Notes for the balince sheet for Westlet in Appendix. IIt at the end of the textbook and determine the types of itveasory Wester has. Foe Wester and Spin Master both bulance uhects include Inventory. Explain how Inventory is unicue far cack of these campamies. 1. How does Spin Maser hatdle its purchase discounts, rebates, import duties, taxes, and transporation costa? Where di: you find this information in the financial statements? Dy the balance in Taven1ory for Spin Master increase of decrease from. December 31, 2016. to December 31, A017y