Please see attachment answer question completely please return by 915.

Final Exam - Problem 1 (35 Points) Part I (27 points) The following data is available for one of the products sold by Carrington Corporation, which uses the periodic inventory system: Date 12/1 12/5 12/18 12/24 On hand, 10 units at $8.00/each Purchased 30 units at $7.80/each Purchased 40 units at $8.15/each Purchased 20 units at $8.25/each $ $ $ $ 80.00 234.00 326.00 165.00 At the end of December, Carrington had 25 units on hand. The 75 units sold generated revenue of $13/each. Determine the amounts for the December 31st ending inventory, the cost of goods sold for December and December's gross margin for each of the inventory costing methods below. Ending Inventory Cost of Goods Sold Gross Margin Weighted Average FIFO LIFO Part II (8 points) Carrington manufactures digital cameras and supplies. It has has experienced noticeable declines in the purchase price of many of the components it uses, including memory components. Which inventory costing method should Carrington use if it wants to maximize net income? Explain your answer. Final Exam - Problem 2 (35 Points) Aliquippa Company purchased equipment at the beginning of 2015 for $60,000. In addition, Aliquippa paid $2,000 for delivery of the equipment to its plant and $1,000 for installation. The equipment has an estimated useful life of 7 years and a residual value of $7,000. Aliquippa is looking at alternative depreciation methods for the equipment. Part I (5 points) Calculate depreciation expense for the year 2015 using the straight-line depreciation method. Part II (5 points) Calculate the book value of the equipment at December 31, 2015 using the double-declining balance depreciation method. Part III (10 points) Which of the above methods is considered accelerated? What is accelerated depreciation? What are the advantages of using an accelerated depreciation method as compared to the straight-line method for lowering taxes early in the life of the equipment? Part IV (15 points) Aliquippa sells the equipment on December 31, 2017 for $33,000. What is the gain or loss on the sale if the company utilized the straight-line method of depreciation? How does this transaction affect the accounting equation and the Statement of Cash Flows? Final Exam - Problem 3 (30 Points) At January 1, 2015, Falcone Company has the following: Preferred stock, $100 par, 7% cumulative, 1000 shares authorized, issued and outstanding Common stock, $10 par, 10,000 shares authorized, issued and outstanding On March 31, the company purchased 2,000 shares of its own common stock for $15/share. The company did not pay any dividends during 2013 or 2014. Part I (10 points) Compute the amount of dividends to be received by preferred and common shareholders in 2015 if the company declares a dividend of $60,000 on December 31, 2015. Part II (5 points) What are dividends per share of common stock as a result? Part III (15 points) Falcone hopes to double its common stock dividend in 2016. It also offers 10 year bonds to prospective investors, which are selling at par with a 5.5% stated interest rate. Discuss the pros and cons of each available investment in Falcone. Which would you recommend to a client? Why