1. XYZ Corporation uses the FIFO method for inventory valuation. For the fiscal year ended December 31, 2023, the following data is provided:
   • Beginning Inventory: 2,500 units at $18 per unit
   • Purchases:
     • March 1: 3,000 units at $20 per unit
     • August 1: 4,500 units at $22 per unit
2. Sales:
   • 8,000 units sold during the year

• Ending Inventory: 2,000 units

a. Calculate the cost of goods sold (COGS) using the FIFO method. b. Determine the value of ending inventory using the FIFO method. c. Prepare XYZ Corporation’s income statement for the year using FIFO. d. Analyze how the FIFO method impacts XYZ Corporation’s gross profit margin and net income. e. Discuss the implications of FIFO on XYZ Corporation’s financial ratios compared to using LIFO. f. Evaluate the impact of a change in sales volume on FIFO-based financial statements.