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23. Choose the option to correctly complete the sentence. Operating income or EBIT is calculated before cost of goods sold is deducted. before operating expenses are deducted. before interest and taxes are deducted. before depreciation expenses are deducted. 4. F\&G Sporting Goods sells baseball equipment to a customer for $15,000. The customer pays $5,000 in cash and agrees to pay the balance in 40 days. Which one of the following choices describes the most appropriate accounting for the transaction? Debit cash $5,000; debit accounts receivables $10,000; credit sales $15,000 Debit cash $5,000; debit accounts payable $10,000; credit sales $15,000 Debit sales $15,000; credit cash $5,000; credit accounts receivables $10,000 Debit cash $5,000; credit sales $5,000 5. In a period of rising prices, which of the following is true if a firm chooses FIFO versus LIFO for their inventory valuation approach? Cost of goods sold will be less using FIFO, which will result in higher net income. 6. Quogue Sporting Goods purchased a new screen-printing machine for $50,000. It cost $1,000 to deliver the machine and $5,000 to install it. The machine has a useful life of 8 years and an estimated salvage value of S8,000. What would the book value for the machine be after 2 years if it was depreciated using the straight-line method? $36,000$42,000$44,000$50,000

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