Clyde Industries began the year with inventory of $87,000. Purchases of inventory on account during the year totaled $312,000. Inventory costing $337,000 was sold on account for $524,000.

(a) Discuss the impact of these transactions on Clyde Industries' balance sheet, particularly on the inventory and accounts receivable accounts.
(b) Describe the cost flow assumption used (e.g., FIFO, LIFO, or weighted average) and its potential effect on the reported cost of goods sold and ending inventory.
(c) Explain how the sale of inventory for $524,000 affects Clyde Industries' income statement, specifically the revenue and cost of goods sold accounts.