Mower-Blower Sales Co. started business on January 20, 2019. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2019 were as follows: Mowers Blowers 210 $ 204 472 191 30e 199 208 195 January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 20 August 15 September 20 November 7 17 $209 310 215 389 217 679 235 170 215 178 209 200 204 The December 31, 2019, inventory included 8 blowers and 21 mowers. Assume the company uses a periodic inventory system. Required: a-1. Compute ending inventory valuation at December 31, 2019, under the FIFO and LIFO cost flow assumptions. FIFO LIFO Blowers Mowers Check Mannisto Inc. uses the FIFO Inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $225,777 and average assets of $1,593,560. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $31,830 more than under FIFO, and its average assets would have been $43,200 less than under FIFO. Required: a. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). (Enter your answers as percentages rounded to 1 decimal place (.e., 12.2%).) FIFO LIFO ROI b. Suppose that two years later costs and prices were falling. Under FIFO, net income and average assets were $268,167 and $1,884,610, respectively. If LIFO had been used through the years, inventory values would have been $40,980 less than under FIFO, and current year cost of goods sold would have been $16,745 less than under FIFO. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). (Enter your answers as percentages rounded to 1 decimal place (i.e., 12.2%).) FIFO LIFO ROI Which expenses would most likely be classified as prepaid expenses (asset) rather than accrued expenses (liability)? Check All That Apply Wages Rent Insurance Premiums Utilities (power, water, etc.) You are reviewing the records for you business and the accounting department has given you the following inventory schedule. Inventory Item Cost of Item Market Value $4,600 $5,350 B 7.200 6,250 6,500 6,500 D 4,050 4,800 E 8,650 9,100 F 9,450 8,500 When the financial statements are prepared and assuming the accounting department analyzes each item separately, the amount presented on the balance sheet in Inventory will be: B D E 1 2 3 Inventory 4 5 6