During fiscal 2010 and 2011 MHR reported inventory writedowns. What is a write down and why was it necessary for MHR to write down some of its inventory? What were the amounts of the writedowns? Where is it reflected in the statements of income and comprehensive income? What impact do writedowns have on MHR's cash flow? Explain. What impact did the writedown have on gross margin for fiscal 2011? What journal entry would MHR have made in 2011 to record the writedown? Do you think inventory writedowns are a major problem in a business like MHR's? Explain.