CPP accounting: purchasing power gains and losses Exprs Company decides to finance part of its assets with

CPP accounting: purchasing power gains and losses Exprés Company decides to finance part of its assets with debt. Assume its start-x1 balance sheet is as follows:

Inventory 75,000 Shareholders’ equity 50,000 Debt 25,000 Total assets 75,000 Total equities 75,000 The annual interest rate on the debt is 15%. Interest is paid in cash at year-end. All other facts are the same as in.

AppenedixLO1