On october 6, 2018, the elgin corporation signed a purchase commitment to purchase inventory for $81,000 on or before march 31, 2019. the company's fiscal year-end is december 31. the contract was exercised on march 21, 2019, and the inventory was purchased for cash at the contract price. on the purchase date of march 21, the market price of the inventory was $61,000. the market price of the inventory on december 31, 2018, was $70,000. the company uses a perpetual inventory system.
1. prepare the necessary adjusting journal entry (if any is required) on december 31, 2018
2. prepare the journal entry to record the purchase on march 21, 2019

If kroger had whole foods’ number of days’ sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? round interim calculations to one decimal place and your final answer to the nearest million.

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?