On january 2, 2013 dyson purchased a utility patent for a new consumer product and paid $180,000. at the time of purchase the patent was valid for 15 years. however the patents useful life was estimated to be only 10 years due to the competitive nature of the product with no residual value. on december 31, 2016, the product was permanently withdrawn from sale under government order because of a potential health hazard. thus no future positive cash flows will result from use of the patent and its fair value is zero.

what amount should dyson charge against income in 2016 assuming straight-line amortization is appropriately recorded at the end of each year?

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?