Problem 1: Indicate which of the following items would be classified as assets on the balance sheets
a. Raw Materials
b. Goodwill
c. Post-retirement health obligations
d. Deferred revenues
e. Foreign currency translation adjustments
f. All software development costs
g. Loans to employee
h. Purchased trademarks
i. Cost of developing patent
j. Prepaid insurance
k. Company's preferred stock
l. Advances from customers
m. Discount on bond payable
n. Premium on bond payable
Problem 2. Financial Statements of ABC Corp. indicates that ending inventory levels in 2004 and 2005 were $200,000 and $350,000 respectively. Cost of Goods sold for 2004 and 2005 were $1,900,000 and $2,500,000 respectively. Purchases in 2005 were: (show your work please)