Your income is $80,000 a year. Bonds earn 6.5% interest. Converting from bonds to cash costs $25 per transaction. Given the assumptions of the inventory model, what is the optimum number of cash conversions per year? [Express your number rounded off to one decimal place.] 7. Extending from #6, what is your money demand? 8. Extending from #6, but where budget cuts have squashed your income down to $50,000 per year and the cost of bond conversion has risen to $50 per transaction. Now what is the optimal number of conversions per year? [Express your number rounded off to one decimal place.]

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.