Julia has recently opened a dry fruitswholesale company dedicated to thesale of peanuts, almonds and pistachios. Thecompanys name is The Nuthouse.The Nuthousewas founded during 2020. Julias passion, longevityand wealth of knowledge in the industry led to TheNuthouse expanding rapidly, creating a network of partners that spans farming operations in the key growing territories of South Africa, Australia, Kenya, Malawi, Zimbabwe, Mozambique and Brazil.

During February, its first month of activity, TheNuthouse made the following transactions:

question: Explain the consequences each valuation methodmay have on the valuation of the inventory inthe above scenario and the determination of thenet income in case of price fluctuation

\begin{tabular}{|l|r|} \hline Salaries & $5650 \\ \hline Electricity bill & $560 \\ \hline Rental expense: Equipment & $1150 \\ \hline Rental expense: Warehouse and office & $1550 \\ \hline Miseellaneous expenditure & $1050 \\ \hline Rental income: Subletting of office space to Fruity-Loops Inc. & $2500 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Salaries & $5650 \\ \hline Electricity bill & $560 \\ \hline Rental expense: Equipment & $1150 \\ \hline Rental expense: Warehouse and office & $1550 \\ \hline Miscellancous expenditure & $1050 \\ \hline Rental income: Subletting of office space to Fruity-Loops Inc. & $2500 \\ \hline \end{tabular}