Using the information below, answer all 7 questions in the box at the bottom. Please label your answers 1-7 Inventory and cost of goods sold calculations made under the FIFO and LIFO methods of inventory valuation are presented below for ABC Co The company has a 30% tax rate. FIFO LIFO Ending Inventory 118,000 55,000 Cost of goods sold 837,000 900.000 955,000 955,000 1. Why would ABC have more cash under LIFO? 2. Does it look like ABC Co is operating in a period of rising or falling prices? 3. How can you tell whether prices are rising or falling? 4. Which inventory method, FIFO or LIFO, most closely approximates the actual physical flow of goods through most companies? 5. Why would most companies' inventories flow in this manner? 6. Which inventory method, FIFO or LIFO, would report the most meaningful inventory for the Balance Sheet? 7. Why would your answer in #6 ablove be more accurate