The Gift Horse bogan 2021 wth 60,000 unts of inventory lhat cost $36,000. During 2021, The Gin Horse purchased merchandise on account for $352,500 (Click the icon to vew the purchases). Cash payments on account lolaled $326,000 during the year fignowe purchase discounts) The Gitt Horses sales during 2021 consisted of 520,000 units of invertory for $660,000, all on account. The compary uses the FHFO inwentory method Cash colfectons from customors wore $630,000 Operating expenses fotaled 5240.500, of which Tho 6.4lt Horse paid $211,000 in cash The Gitl Horse credited Read the tesqurements Requirement 1. Show how The Gill Horse would corpule cost of goods sold for 2021 Data table Requirements 1. Show how The Gift Horse would compute its cost of goods sold for 2021. 2. Prepare The Gift Horse's income statement for 2021. Show subtotals for the gross profit and income before tax. 3. Make summary journal entries to record The Gift Horse's transactions for the year, assuming the company uses a perpetual inventory system. Explanations are not required. 4. Determine the FIFO cost of The Gift Horse's ending inventory at December 31, 2021, two ways: a. Use a T-account. b. Multiply the number of units on hand by the unit cost. 5. Determine The Gift Horse's gross profit percentage, rate of inventory turnover, and net income as a percentage of sales for the year. In The Gift Horse's industry, a gross profit percentage of 40%, an inventory turnover of six times per year, and a net income percentage of 7% are considered excellent. How well does The Gift Horse compare to these industry averages