DECISION PROBLEMS

$(2)$

Measuring profitability based on different inventory and amortization methods

Net income: Zastre Associates, $$116,000$

DP$10-1$

Suppose you are considering investing in two businesses, Zastre Associates and Chen Co$.$ The two companies are virtually identical, and both began operations at the beginning of $2020.$ During the year, each company purchased inventory as follows:

$\backslash$table$[[$Jan$.10,12,000$ units at $$7=$$$84,000$