ments questions 6.1 - 6.4. Case: ToyoMaster Imports and distributes a range of motor vehicles into Australia. These are manufactured at factories in Japan, Thailand and the USA and imported into Australia. ToyoMaster currently sells and distributes to retailers in all Australian states except for Western Australia. The business plans to expand to Western Australia and you have been invited to invest in the business. You have been provided with the information below to assist in the decision to invest in the business. Income Statement ToyoMaster Year ending 30 June 2021 Sales revenue 225,570,000 COGS (157,520,000) Gross profit 68,050,000 Operating expenses: Salaries expense (11,522,760) Rent expense (1,500,000) business. Income Statement ToyoMaster Year ending 30 June 2021 225,570,000 (157.520,000) 68,050,000 Sales revenue COGS Gross profit Operating expenses: Salaries expense Rent expense Bad debts expense Interest expense Net profit (11,522,760) (1,500,000) (250,700) (2.700,900) 52,075,640 You have done some research about the business and have identified that ToyoMaster uses the moving average inventory costing method. The business has used this method to determine cost of goods sold since inception in 2005. Question 6.2 Advise ToyoMaster on what you think is the most appropriate inventory costing method to determine the cost of goods sold and describe why this method is the most appropriate. Choose at least two relevant principles, assumptions, qualitative characteristics, generally accepted accounting principles, and/or accounting standards (relevant theory), describe them. and explain how they support your choice of method. Answer this question in the following format: 1. The most appropriate inventory costing method to determine the cost of goods sold is.....(1 mark) 2. The first relevant theory which supports the choice of this method is.... (describe theory) (2 marks) 3. This theory supports the choice of method by... (explain how this theory supports your choice of method) (2 marks) 4. The second relevant theory which supports the choice of this method is.... (describe theory) (2 marks) 5. This theory supports the choice of method by... (explain how this theory supports your choice of method) (2 marks)