Use the Consolidated Statements of Earnings to answer the following questions. a. For the three most recent
Question:
Use the Consolidated Statements of Earnings to answer the following questions.
a. For the three most recent fiscal years list the amounts reported for "Sales." Comment on whether the three-year trend of sales is favorable or unfavorable. Sales is what type of an account? Which principle of accounting is relevant for recording these amounts?
b. For the three most recent fiscal years list the amounts reported for "Total Cost of Sales." Total Cost of Sales is what type of account? Were all of these amounts paid in cash? Which principle of accounting is relevant for recording these amounts?
c. For the three most recent fiscal years list the amounts reported for "Net Earnings (Loss). Is the three-year trend of net income favorable or unfavorable? What title does the text use to refer to net earnings?
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones