Refer to the Foot Locker, Inc., consolidated financial statements in Appendix B at the end of this book. Show amounts in millions and round to the nearest $1 million.1. Three important pieces of inventory information are (a) The cost of inventory on hand, (b) The cost of sales, (c) The cost of inventory purchases. Identify or compute each of these items for Foot Locker, Inc., at the end of its fiscal 2007 year.2. Which item in requirement 1 is most directly related to cash flow? Why? (Challenge)3. Assume that all inventory purchases were made on account, and that only inventory purchases increased Accounts Payable. Compute Foot Locker, Inc.’s cash payments for inventory during fiscal 2007.4. How does Foot Locker, Inc., value its inventories? Which costing method does Foot Locker, Inc., use?5. Did Foot Locker, Inc.’s gross profit percentage and rate of inventory turnover improve or deteriorate in fiscal 2007 (versus fiscal 2006)? Consider the overall effect of these two ratios. Did Foot Locker, Inc., improve during fiscal 2007? How did these factors affect the net income for fiscal 2007? Foot Locker, Inc.’s inventories totaled $1,254 million at the end of fiscal 2005. Round decimals to three places.