Suppose that Dell Corporation has 20,000 computers in its warehouses on December 31, 2016, ready to be

Question:

Suppose that Dell Corporation has 20,000 computers in its warehouses on December 31, 2016, ready to be shipped to merchants (each computer is valued at $500). By December 31, 2017, Dell Corporation has 25,000 computers ready to be shipped, each valued at $450.

a. Calculate Dell's inventory on December 31, 2016.

b. Calculate Dell's inventory investment in 2017.

c. What happens to inventory spending during the early stages of an economic recession?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...