Using the following information, calculate the ending inventory balance and the cost of goods sold expense that would reported at the end of the year if the LIFO inventory valuation method and a periodic inventory system are used: Units Purchase Price(per unit) Beginning inventory 8 $5 Purchase #1 10 $6 Purchase #2 14 $7 Purchase #3 12 $6 Sales 40

2. The Presto Company purchases equipment for $20,000. Management estimates that the equipment will have a useful life of five years and salvage value of $5,000. Calculate depreciation expense and net book value of the equipment at the end of the third year using the straight-line method of depreciation.

3. The following calculations have been made for Coos Company: Growth, 2014 to 2015 Net sales 10.5% Total accounts receivable 21.3% Allowance for doubtful accounts 2.6% 2014 2015 Allowance for doubtful accounts as a percentage of total accounts receivable 3.8% 5.4%

Analyze the accounts receivable and allowance for doubtful accounts changes.