Problem 1- Inventory Theory Consider the following Example - 1/1/x1P buys inventory from a third party vendor for S for $800,000. - During x1,P sells the inventory to S for $700,000 - During x1, S sells 70% of the inventory to a third party for $300,000. - During 2, S sells the remaining 30% of the inventory to a third party for $500,000. Please answer the following questions 1) What is the correct consolidated sales for x1 2) What if the correct consolidated COGS for x1 3) What is the correct consolidated inventory at 12/31/2 4) What is the correct consolidated sales for 2? 5) What is the DGP for x1 ? 6) Provided the two entries for x1 and the one entry for 2. Problem 1- Inventory Theory Consider the following Example - 1/1/x1P buys inventory from a third party vendor for S for $800,000. - During x1,P sells the inventory to S for $700,000 - During x1, S sells 70% of the inventory to a third party for $300,000. - During 2, S sells the remaining 30% of the inventory to a third party for $500,000. Please answer the following questions 1) What is the correct consolidated sales for x1 2) What if the correct consolidated COGS for x1 3) What is the correct consolidated inventory at 12/31/2 4) What is the correct consolidated sales for 2? 5) What is the DGP for x1 ? 6) Provided the two entries for x1 and the one entry for 2