VEDETT INC.'s December 31, 2016 financial statements show inventory worth 63 million and cost of sales of 255.5 million. A financial analyst believes that part of the inventories VEDETT INC. holds on December 31, 2016 should be considered obsolete. The analyst believes that the firm's optimal inventory holding period is 60 days and that 40% of the excess' inventory should be considered obsolete and consequently should be written down. VEDETT INC. is subject to a 25% corporate tax rate. C. (5p.) Calculate and report the adjustments that the analyst should make to VEDETT INC.'s December 31, 2016 Balance Sheet and 2016 Income Statement