Excel city's store supply internal service fund provides services only to general government departments. during 20x1, the internal service fund reported operating revenue of $50,000 and operating expenses of $35,000. what amount of adjustment is needed to convert the governmental funds statement of revenues, expenditures, and changes in fund balance to governmental activities in excel city's government-wide statement of activities
1) increase revenue by $50,000.
2) increase expenses by $35,000.
3) decrease revenue by $15,000.
4) decrease expenses by $15,000.

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?