What does the write-down mean

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Question - What does the "write-down" mean?

What journal entry would Abercrombie & Fitch have made to write down its merchandise inventory during the year ended January 30, 2016?

What impact would the write-down of inventory have had on Abercrombie's assets? Liabilities? Equity?

What impact would the write-down of inventory have had on Abercrombie's expenses? Gross margin? Net income?

What impact, if any, would the write-down of inventory have had on Abercrombie's current ratio?

From an investor standpoint, do you think that the effect of the inventory write-down should be considered when evaluating Abercrombie & Fitch? Explain.

Reference no: EM133005297

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