For each Multiple Choice question, prepare a 2-3 sentence description, that explains why the answer is correct (or alternatively why the others are wrong).

CarMax Inc. reports sales of $10,003,599 thousand and cost of sales of $8,624,838 thousand for the year ended February 29, 2012. The gross profit for the year is: A) $18,628,437 B) $1,378,761 C) 86.2% D) 13.8% E) There is not enough information to determine gross profit. The 2012 annual report of Oracle Corporation included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $372 million, accounts written off during the year of $141 million, balance in allowance at the end of the year $323 million. What did Oracle Corporation report as bad debt expense for the year? A) $49 million B) $190 million C) $92 million D) $182 million E) None of the above The 2011 financial statements of Leggett & Platt, Inc. include the following information in a footnote. What are the company's gross accounts and other receivables at the end of 2011? (in millions) 2011 2010 Allowance for doubtful accounts $24.3 $22.1 Total accounts and other receivables, net $503.8 $478.9 A) $503.8 million B) $479.3 million C) $503.2 million D) $527.9 million E) None of the above On December 31, 2012, Tri-State Construction Inc. signs a contract with the state of Texas Department of Transportation to manufacture a bridge over the Rio Grande. Tri-State anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project: Contract price $420 million Estimated construction costs $300 million Estimated total profit $120 million During the three-year construction period. Tri-State incurred costs as follows: 2013 $ 30 million 2014 $180 million 2015 $ 90 million Tri-State uses the percentage of completion method to recognize revenue. Which of the following represent the revenue recognized in 2013, 2014, and 2015? A) $140 million, $140 million, $140 million B) $30 million, $180 million, $90 million C) $12 million, $72 million, $36 million D) $42 million, $252 million. $126 million E) None of the above