I would like the answer of the last three questions please. It is about the Polymedica Corporation case study. You can find it online because its a bit long.

Question 5 should focus on the decisions management must make and actions it should take in response to SEC investigation and short seller accusations.

Thank you.

Poly Medica Corporation (A) Questions SO 1. Explain the difference between an asset and an expense. 2. Explain the role of advertising in the company's customer acquisition strategy. 3. What are the arguments in favor of capitalizing the direct-response advertising expenditures? What are the arguments in favor of expensing the direct-response advertising expenditures as incurred? As a CEO of PolyMedica, would you favor capitalizing or expensing the direct- response advertising costs? 4. What would be the impact on the company's financial statement if PolyMedica had expensed the costs as incurred in 2003 and 2002?' Calculate key balances that highlight any major differences. 5. As a CEO of PolyMedica, how might you respond to this direct-response advertising accounting issue raised by the SEC and short sellers