C7-1 Computing and Evaluating Financial Statement Effects of Alternative Inventory Costing Methods (Chapters 2 and 7ILO 2-5, LC 7-3] IThe following Information applies to the questions displayed belowj You have been given responsibility for overseeing a bank's small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.2 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a company's inventory costing method is important, you present the following balance sheet information. 30 Current assets other than inventory Inventory 145 Other (noncurrent) assets (b) Total assets Current liabilities 55 Other (noncurrent) liabilities 60 (d) Stockholders' equity Total liabilities and stockholders' equity (c) You ask the former loans manager to find amounts for (a), (b), (c), and (d) assuming the company began the year with 4 units of inventory at a unit cost of $13, then purchased 7 units at a cost of $17 each, and finally purchased 4 units at a cost of $21 each. A year-end inventory count determined that 2 units are on hand