please answer questions 4 and 5 only and explain the answer you got

answer for questions 1-3

Inverness Steel Corporation is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products. The company's income statement for the 2021 fiscal year reported the following information ($ in millions): Sales Cost of goods sold $6,255 5,190 The company's balance sheets for 2021 and 2020 included the following information (S in millions): 2021 2020 Current assets: Accounts receivable, net Inventories $703 880 $583 808 The statement of cash flows reported bad debt expense for 2021 of $8 million. The summary of significant accounting policies included the following notes (Sin millions): Accounts Receivable (In part) The allowance for uncollectible accounts was $10 and $7 at December 31, 2021 and 2020, 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 inventories 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 2021 and 2020, respectively. During 2021, 2020, and 2019, liquidation of LIFO layers generated income of $6. $7, and $25, respectively. Required: Using the information provided: 1. Determine the amount of accounts receivable Inverness wrote off during 2021 2. Calculate the amount of cash collected from customers during 2021. 3. Calculate what cost of goods sold would have been for 2021 if the company had used average cost to value its entire inventory 4. Calculate the following ratios for 2021: a. Receivables turnover ratio b. Inventory turnover ratio c. Gross profit ratio 5. Explain briefly what caused the income generated by the liquidation of LIFO layers. Assuming an income tax rate of 25%, what was the effect of the liquidation of LIFO layers on cost of goods sold in 2021? Requirement 1 Allowance for uncollectible accounts 8 Balance, beginning of year $7 7 Add: Bad debt expense for 2021 Less: End-of-year balance (10) Accounts receivable written off Requirement 2 Accounts receivable analysis: $ 5 Balance, beginning of year ($583 + 7) $ 590 Add: Credit sales 6,255 Less: write-offs (from Requirement 1) (5) Less: Balance end of year ($703 + 10) _(713) Cash collections $6,127 Requirement 3 Cost of goods sold for 2021 would have been $130 million lower had Inverness used the average cost method for its entire inventory. While beginning inventory would have been $350 million higher, ending inventory also would have been higher by $480 million. An increase in beginning inventory causes an increase in cost of goods sold, but an increase in ending inventory causes a decrease in cost of goods sold. Purchases for the year are the same regardless of the inventory valuation method used. Therefore, cost of goods sold would have been $5,060 ($5,190 - 130)