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Q6. Suppose that Dell Corporation has 20,000 computers in its warehouses on December 31,2016, ready...

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Accounting

Q6. Suppose that Dell Corporation has 20,000 computers in its warehouses on December 31,2016, ready to be shipped to merchants (each computer is valued at $500). By December 31,2017, Dell Corporation has 25,000 computers ready to be shipped, each valued at $450.
a) Calculate Dells inventory value (in dollars) on December 31,2016.
b) Calculate Dells inventory investment in 2017.
c) What happens to inventory spending during the early stages of an economic recession?

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