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2 Investors are vitally interested in a company's sales and profits, and its trends of sales and profits over time. Consider Foot Locker's sales and net income (net loss) during the period from 2005 through 2007. Compute the percentage increase or decrease in net sales and also in net income (net loss) from 2005 to 2007. Which item grew faster during this two-year period, net sales or net income (net loss)? Can you offer a possible explanation for these changes?
The Red Car Division has excess capacity and the 1,000 units can be produced without interfering with the current outside sales of 5,000. The 6,000 volume is within the division's relevant operating range.
One class of deductions is variously described as deductions for AGI, above-the-line deductions, and page 1 deductions. Explain the meaning of the various designations.
How is an auditors examination affected when a client has engaged in significant related party transactions? What measures should an auditor take to determine that such transactions have been properly recorded by the client?
Which one of the following statements concerning net working capital is correct?
A corporation sold land (with an adjusted basis of $240,000) for $200,000 to its majority shareholder. (A) What is the company's recognized gain or loss on the sale?
How does the AICPA Code of Professional Conduct relate to ethics? Provide examples to support your response.
Why is Preferred Stock less risky? I would think that since they take precedence over the Common Stock holders that they would hold the same or more risk?
What are the differences and similarities between walmart and kamart balance sheets? What classifications are presented?
Harnish Corporation is developing standards for its products. One product requires an input that is purchased for $55.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price.
Rancor Inc. had a per-unit conversion cost of $2.50 during April and incurred direct materials cost of $100,000, direct labor costs of $75,000, and overhead costs of $45,000 during the month. How many units did they manufacture during the month?
If 30,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it?
When a company ships product to a customer with the terms f.o.b. (free on board) destination, which of the following is true?
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