Question# 3Xiomi Co. is a retailer dealing in a single product. Beginning inventory at January 1 of this year iszero, operating expenses for this same year are $5,000, and there are 2,000 common sharesoutstanding. The following purchases are made this year:UnitsPer UnitCost$ 1,0003,3007,2004,2007,50023,200JanuaryMarch100$ 1030011June60012October30014December50015Total1800Ending inventory at December 31 is 800 units. End-of-year assets, excluding inventories, amountto $75,000, of which $50,000 of the $75,000 are current. Current liabilities amount to $25,000, andlong-term liabilities equal $10,000.Required:a) Determine net income for this year under cach of the following inventory methods. Assume asales price of $25 per unit and ignore income taxes.i) FIFOii) LIFOiii) Average costb) Compute the following ratios under each of the inventory methods of FIFO, LIFO, and averagecost.i) Current ratioii) Debt-to-equity ratioiii) Inventory turnoveriv) Return on total assetsv) Gross margin as a percent of salesvi) Net profit as a percent of salesc) Discuss the effects of inventory accounting methods for financial statement analysis given theresults from parts (a) and (b).

Name: Question# 3Xiomi Co. is a retailer dealing in a single product. Begin
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Question# 3Xiomi Co. is a retailer dealing in a single product. Beginning inventory at January 1 of this year iszero, operating expenses for this same year are $5,000, and there are 2,000 common sharesoutstanding. The following purchases are made th