Nestl Data for the year ended December 31, 2023: Item Amount Inventory Cost $1,500,000 Market Value of Inventory $1,300,000 Sales $6,000,000 Cost of Goods Sold

Nestlé Data for the year ended December 31, 2023:

Item	Amount
Inventory Cost	$1,500,000
Market Value of Inventory	$1,300,000
Sales	$6,000,000
Cost of Goods Sold	$4,000,000
Operating Expenses	$1,200,000

1. Calculate the amount of inventory to be reported on the balance sheet.
2. Determine the impact on net income due to the write-down of inventory.
3. Discuss the impact of inventory write-down on Nestlé’s operating income.
4. Explain the application of the Conservatism Principle in inventory valuation.
5. How should the company record the inventory write-down?