Required: The Week4 Forum consists of two separate questions. You will answer one of the two questions. The chosen question needs to be answered with an initial post ofat least 250 words. (1 st...

Required:

The Week4 Forum consists of two separate questions. You will answer one of the two questions. The chosen question needs to be answered with an initial post ofat least 250 words.

(1^st
question) Describe a classified income statement. Be sure to address the classified income statement’s four sections and the important financial relationships found within the statement.

(2^nd
question) The United States has a capitalistic economy. What is capitalism? Explain how the different inventory valuation methods affect a company’s financial statements. Can the inventory valuation method chosen affect a company’s ability to compete in a capitalistic economy? Please explain.

Instructions:Your initial response should be no less than 250 words.

Week 4: Inventories   This week we will explore Chapter(s) 7 and 8 of the textbook.  Chapter 7 introduces inventories and the classified income statement. It further compares service and merchandising companies.  Chapter 8 discusses methods of measurement for inventories and how the cost of goods sold and net income are affected by the different methods.   Week 4: Lesson Objectives Chapter 7 · Record journal entries for sales transactions involving merchandise. · Describe briefly cost of goods sold and the distinction between perpetual and periodic inventory procedures. · Record journal entries for purchase transactions involving merchandise. · Describe the freight terms and record transportation costs. · Determine cost of goods sold. · Prepare a classified income statement. · Analyze and use the financial results—gross margin percentage. · Prepare a work sheet and closing entries for a merchandising company. Chapter 8 · Explain and calculate the effects of inventory errors on certain financial statement items. · Indicate which costs are properly included in inventory. · Calculate cost of ending inventory and cost of goods sold under the four major inventory costing methods using periodic and perpetual inventory procedures. · Explain the advantages and disadvantages of the four major inventory costing methods. · Record merchandise transactions under perpetual inventory procedure. · Apply net realizable value and the lower-of-cost-or-market method of inventory. · Estimate cost of ending inventory using the gross margin and retail inventory methods. · Analyze and use the financial results- inventory turnover ratio. Reading and Resources Our reading for Week 4 includes Chapter(s) 7 and 8 of the textbook.  Pay particular attention to the sections titled "Key Terms" throughout the reading.  They provide a great way for us to see how what we are learning can be applied in the workplace.  The "Understanding the Learning Objectives" section found at the end of the chapters are also a great way to be sure you understand what you have covered and can apply it to solve problems.    Accounting Principles: A Business Perspective, Financial Accounting (Chapters 1-8) James Don Edwards, Roger H. Hermanson, and Bill Buxton   In addition to the required course text, the following public domain websites and video links are useful. Please abide by the university’s academic honesty policy when using Internet sources. Note website and video addresses are subject to change. · American Psychological Association (APA) Style Website · Purdue Online Writing Lab · YouTube Video on Formatting an APA Style Paper · Microsoft Office Training Website · YouTube Videos on Microsoft Excel for Beginners · Turnitin Website · principlesofaccounting.com · NetMBA.com