please answer all the questions in the attched file and show all work

Turn-In Problems Problem 1 The Cardware Store uses the LIFO method to value its stationary inventory. Inventory at the beginning of the year consisted of 10,000 units of the company's one product. These units cost $15 each. During the year, 60,000 units were purchased at a cost of $18 each and 64,000 units were sold. Near the end of the fiscal year, management is considering the purchase of an additional 5,000 units at $18. What would be the effect of this purchase on income before income taxes? What would your answer be if the company used FIFO instead of LIFO? Turn-In Problems Problem 2 Ampersand & Gravel is a construction company. The company's income statement for the 2018 fiscal year included the following information ($ in millions): Sales Cost of Goods Sold $6,255 $5,190 The company's balance sheet for 2018 and 2017 included the following information ($ in millions) Accounts receivable, net Inventories 2018 $703 $880 2017 $583 $808 The statement of cash flows reported bad debt expense for 2018 of $8 million. The summary of significant accounting policies included the following notes ($ in millions): Accounts Receivable (in part) The allowance for uncollectible accounts was $10 and $7 at December 31, 2018 and 2017, respectively. All sales are on credit. Inventories Inventories are valued at the lower of cost or market. The cost of the majority of inventories is measured using the last in, first out (LIFO) method. Other inventories are measured principally at average cost and consist mostly of foreign inventory and certain raw materials. If the entire inventory had been valued on an average cost basis, inventory would have been higher by $480 and $350 at the end of 2018 and 2017, respectively. During 2018, 2017, and 2016, liquidation of LIFO layers generated income of $6, $7, and $25, respectively. Using the information provided: 1. Determine the amount of accounts receivable Ampersand & Gravel wrote off during 2018. 2. Calculate the amount of cash collected from customers during 2018. 3. Calculate what cost of goods sold would have been for 2018 if the company had used average cost to value its entire inventory. 4. Calculate the following ratios for 2018: a. Receivables turnover ratio b. Inventory turnover ratio c. Gross profit ratio Turn-In Problems Turn-In Problems