Question: Refer to the Creative Technology example on delaying write downs of
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.
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