dentify the upstream and downstream costs. Determine the year 1 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. Determine the sales price assuming that Munoz desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and distributing the batteries. Prepare a GAAP-based income statement for year 1. Use the sales price developed in Requirement c