Amazon must carry inventory to meet demand from its customers. If the item is not in inventory the customer may go elsewhere to source the item whether it is a raw material or final product. Amazon's finance managers are concerned about carrying too much inventory as they borrow money to finance the inventory on hand which can prove to be expensive. Management therefore spends a considerable amount of time evaluating: a. the demand for its products over the next period.
b. the costs associated with holding a sufficient amount of inventory-both financing, storage, transportation and other costs the costs associated with not having enough inventory to satisfy customer demand
c. the EOQ model or economic ordering quality model to determine the optimal amount of inventory to maintain.
d. all of the above.
e. none of the above.

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.