SweetTreats.com sells specialty cakes and cookies over the Internet. In its first two years of business the company had relatively high sales but also suffered large losses. The company’s income statement for the most recent two years are as follows:

Required
a. Assume you are a senior manager for SweetTreats.com. What forward-looking in formation would you like to see in addition to the income statement?
b. For internal reporting purposes, the company has capitalized certain costs related to employee training and advertising. Management’s view is that these costs have in¬ creased the value of an important asset—the company's brand name. Would this be al¬ lowed for external reporting purposes under GAAP?
c. Is the information in the income statement sufficiently detailed for management’s needs? Provide four examples of more detailed information that managers would likely request.
d. Suggest three nonmonetary measures that would be useful to managers of SweetTreats.com but are not included in external financial reports.
e. SweetTreats.com currently reports its income statement on its Web site. Why might management of SweetTreats.com be reluctant to present nonmonetary information along with the income statement on the company's Web site?

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2008 Sales $5,860,340 2007 $1,393,500 Cost of sales 4,568,421 1,165,247 Gross profit 1,291,919 228,253 Selling, general and administrative expenses: Payroll and payroll taxes 945,672 654,783 Option-based compensation 485,622 125,367 Occupancy & office expenses 523,160 321,456 Contract services and professional fees 704,880 436,050 Internet servicing expenses 201,458 136,598 General and administrative expenses 687,482 359,657 Advertising and promotion 1,257,863 684,571 Depreciation and amortization 19,875 12,458 Total (Loss) from operations 4,826,012 2,730,940 ($3,534,093) ($2,502,687)