1 )Note 4 Inventories of the Consolidated Financial Statements, includes a 2nd table of information underneath the breakdown of raw materials, work in process and finished goods. Using this information:

A) For each of fiscal 2019 and 2018, determine the % of write-downs of inventory compared to the Cost of inventories recognized as expense and included in cost of sales. Are the %s similar? Are inventory write-downs a significant problem for NFI Group?

B) NFI Group starts to manufacture buses and motor coaches only when they have a signed contract from a customer. The contract specifies a fixed price the customer will pay. NFI Group does not manufacture buses and motor coaches without a customer order, and then hope to find a customer at some point in the future. How does this business model impact the possibility of NFI needing to record inventory write-downs? [Hint: Think about comparing NFIs situation to a standard car manufacturer such as Ford, or to a retailer such as Dollarama. Would you expect those companies to have a higher or lower rate of inventory write-downs?]

3. ACCOUNTS RECEIVABLE Trade, net of allowance for doubtful accounts Other December 29, 2019 $ 471,552 $ 60,184 $ 531,736 $ December 30, 2018 358,441 29,045 387,486 4. INVENTORIES Raw materials Work in process Finished goods December 29, 2019 December 30, 2018 $ 300,447 $ 213, 117 263,343 150,654 108,453 60,914 $ 672,243 $ 424,685 $ Cost of inventories recognized as expense and included in cost of sales Write-down of inventory to net realizable value in cost of sales Reversals of a previous write-down in inventory Fiscal 2019 2,452,170 $ 4,538 471 Fiscal 2018 2,015,272 4,407 2,545