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    Obsolete Inventory - impact on year end Income Statements

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    When a company holds a large amount of inventory that is not being sold, what is the impact on the financial statements when the inventory becomes obsolete? When the retail industry had to put a lot of merchandise on sale, how did this impact their year end Income Statements?

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    Hi there,

    The impact on the financial statements is that the value of the company's total assets will be overvalued. When the company lists their inventory on their balance sheet, it must be ...

    Solution Summary

    The expert examines the impact on year end income statements for Obsolete inventory.