Question 1 Megumi-san and Hattori-san are financial accountants. The need to respond to the following problems (10 points): Information in 2020 About inventory - FIFO method Date Description 1-Jan 1-May 1-Jul Inventory Credit Purchase Credit Sales a) b) c) Quantity 40 100 70 Unit Selling Price or Unit Cost EUR 400 EUR 450 EUR 800 About plant assets Equipment EUR 4,800,000 Less: Accumulated Depreciation- Equipment EUR 500,000 The company uses straight-line depreciation for equipment. The equipment is estimated to have a 10-year useful life and no salvage value. Oct 1 Sold equipment that cost EUR 75,000 when purchased on January 1, 2016. The equipment was sold for EUR 45,000. Journalize those transactions! (4 points) Explain the possible impacts on the firm's Statement of Cash Flows! (3 points) Explain the possible impacts on the firm's Financial Statement Ratio Analysis! (3 points)

Question 1 Megumi-san and Hattori-san are financial accountants. The need to respond to the following problems (10 points): Information in 2020 About inventory - FIFO method The company uses straight-line depreciation for equipment. The equipment is estimated to have a 10-year useful life and no salvage value. Oct 1 Sold equipment that cost EUR 75,000 when purchased on January 1, 2016. The equipment was sold for EUR 45,000. a) Journalize those transactions! ( 4 points) b) Explain the possible impacts on the firm's Statement of Cash Flows! (3 points) c) Explain the possible impacts on the firm's Financial Statement Ratio Analysis! ( 3 points)