I need help answering the following two problems given in the attached information.
(a) Prepare the inventory section of Maddox's balance sheet as of November 30, 2010, including any required note(s).
(b) Without prejudice to your answer to (a), assume that the market value of Maddox's inventories is less than cost. Explain how this decline would be presented in Maddox's income statement for the fiscal year ended November 30, 2010.
The complete solution is provided for the Maddox case. The solution provides the correct preparation of the inventory section of Maddox's balance sheet including required notes, and discusses how the market value being less than cost would be presented.