QUESTION 78 Confused Lid is just completing its first year of operations and is in the process of selecting the B unting policies will adopt. John Hall the nor accounting clerk, has prepared the following two sets of financial Batements using different counting policies and accounting estimates that they are considering. Unfortunately, he can't remember which policies he used for which statements. Confused Ltd Dral Financial Statements Sell 5500.000 Revenues Cost of goods sold Gross Margin Operating expenses Net income Set2 5500.000 375.000 125.000 140.000 54.000 Cash 325.000 325.000 Accounts receivable.net 00.000 34.000 Inventory 70.000 55.000 Capital assets, net 425.000 400.000 Current bites (90.000) (00.000) Long-lamb es (250,000) (260.000) Shareholders uity 200.000) Required Determine which set of financiament was prepared using FIFO and which was reading the price f or has been doing Epe how you hondon Norman QUESTION 79 Using the financial information for Confused above. Determine which set of rec e nt was prepared using dengan depreciation of 20 won of 20 ye ? E n how you TTTT Paragraph Arial 3/12 E-E T - . QUESTION 80 Using the financial information for Confused Ltd above. Determine the following: 1) Which set made the company appear to be more profitable? Do you agree with the results? 2) Why did the amount of cash remain the same? Be sure to explain how you arrived at your answers and no marks will be awarded for guessing