Refer to the Creative Technology example on delaying write-downs of current assets. How much excess inventory do

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Refer to the Creative Technology example on delaying write-downs of current assets. How much excess inventory do you estimate Creative Technology is holding in March 2005 if the firm’s optimal days’ Inventory is 100 days? Calculate the inventory impairment charge for Creative Technology if 50 percent of this excess inventory is deemed to be worthless. Record the changes to Creative Technology’s financial statements from adjusting for this impairment.


Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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