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The bellsouth Company hired Bob for the position of chief operating officer (COO) on a four-year contract. Below are the operating data for the four
The bellsouth Company hired Bob for the position of chief operating officer (COO) on a four-year contract. Below are the operating data for the four years in which he was coo. At the end of this period, the board of directors fired Bob because it felt the company's performance had deteriorated throughout his four years of management. Bob filed suit against the company claiming he had been wrongly discharged (fired) without cause. Year 1 Year 2 Year 3 Year 4 Sales (in $1,000) $4,500.00 $5,200.00 $5,600.00 $6,000.00 Cost of Good Sold $2,000.00 $2,400.00 $2,800.00 $3,400.00 Gross Profit $ 2,500.00 $2,800.00 $2,800.00 $2,600.00 Operating Expenses $2,100.00 $2,500.00 $2,700.00 $2,800.00 Net Incpme(loss) $ 400.00 $ 300.00 $ 100.00 $ (200.00) During the trial, Bob's expert witness argued stronglyto the jury that actually "Income" had grown every year under Bob's management, and therefore, he should have been rewarded for his success, not fired." In this case Bob's expert witness: A) Was confused because income declined every year Bob was there, only sales increased. B). Was right about the income growth, but failed to mentionthe growth in expense during the same time period C). Was right because there was significant company operating growth every year D). Is correct, and he is merely selecting the accounting information that is favorable to his client and not mentioning accounting information that is not favorable to his client
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