Required information Great Adventures Problem AP6-1 Skip to question [The following information applies to the questions displayed below.]

Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet wont damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $494 each.

Jul. 17 Purchased 44 watches for $6,336 ($144 per watch) on account. Jul. 31 Sold 34 watches for $16,796 cash. Aug. 12 Purchased 34 watches for $5,236 ($154 per watch) cash. Aug. 22 Sold 24 watches for $11,856 on account. Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $18,600 for watches sold on account on August 22. Oct. 27 Purchased 74 watches for $12,136 ($164 per watch) cash. Nov. 20 Sold 84 watches for $41,496 cash. Dec. 4 Purchased 108 watches for $18,792 ($174 per watch) on account. Dec. 8 Sold 34 watches for $16,796 on account. Great Adventures Problem AP6-1 Part 1 Required:

1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2022, assuming Suzie uses FIFO to account for inventory.

1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.

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