At the end of the current fiscal year, Demco Inc. had 3000 units of Product A that was purchased for $10 per unit. On the last day of the fiscal year the controller was advised by the supplier of Product A that due to an extreme shortage of raw materials required to manufacture Product A, the price had doubled and it would now cost Demco Inc. $20 to buy it. With this new information the controller valued the 3,000 units in inventory at the new cost of $20 and created an additional $30,000 of profit. One month later during the audit of Demco Inc., you PA, confirmed the new price with the supplier and you are informed that the price had dropped to $15 per unit due to new sources of raw materials. What adjustment (if any) is required to inventory? a) an adjustment to decrease inventory by $45,000 b) An adjustment of decrease inventory y $15,000 c) No adjustment is required since the drop in price occurred after year-end d) An adjustment to decrease inventory by $30,000 If your client earned an after tax profit of $3,000,000 in 2019, had an ending retained earnings balance in 2018 of $12,980,000 and showed a balance in retained earnings at the end of the current fiscal year of 14,480,000, what is the amount of dividends paid in the year? a) $1,500,000 b) 3,000,000 c) Undeterminable d) $4,500,000 During the audit of the dividends declared and paid account, what is one procedure the auditor can perform to verify the accuracy of the ($) amount paid a) Multiply the number of shares used and outstanding by the dividend per share b) Divide the net income for the year by the number of authorized shares in the company's articles of incorporation and compare it to the dividend per share c) Compare the total amount of dividends paid as a percent of net income d) Multiply the number of shares issued and outstanding by EPS