Explanation:
Data provided in the question
Change in the inventory = $1,030,000
i.e Opening inventory = $1,030,000
Income tax rate = 35%
So, the cumulative effect in the year 2018 is
Opening inventory $1,030,000
Less: income tax rate i.e 35% -$360,500
Balance $699,500
This balance would be addition to the beginning balance of the retained earning statement
The trend this business is following is necessities, since those are things we need.
Answer:
sell off part of its inventory and or equipment
Explanation:
Debt/Equity=
Total Shareholders’ Equity /
Total Liabilities