1 Despite the figures you can observe in the comparative income statements, sales activity of 20X1 is significantly greater than that of period 20X0. Several major customers, essentially government and semi-government agencies with unused budget allowances in 20X0 had paid in advance in 20X0 for deliveries that did not take place until 20X1. This shifted sales that really took place in 20X1 towards 20X0, thus creating the erroneous perception that 20X1 sales were only 10% greater than those of 20X0. In reality the sales of your company have increased brilliantly by 40%.