Please look at the images below and answer the following questions. For the purpose of this problem, assume that inventory values determined using the average cost method are equivalent to FIFO values. Also assume that revenue is presented net of bad debt expense.

1.Assume that the Company charged $7 million as bad debt expense. Compute the amount of bad debts written off in 2010.

2.Compute the amount of cash collected from customers during the year ended May 30^th, 2010.

3.What cost flow assumption(s) for inventories does General Mills use?

4.Suppose that General Mills had in all periods used FIFO as their cost flow assumption for all their inventories. What would have been General Mills' book value of inventories at the end of fiscal year 2010 under this alternative cost flow assumption?

5.What is the amount of inventory purchases in fiscal year 2010?

6.If General Mills had used FIFO as a cost flow assumption for all of their inventories, recalculate the value of COGS on a FIFO basis.