The following information was taken from the 2008 annual reports of Walgreens and The Limited (dollars in

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The following information was taken from the 2008 annual reports of Walgreens and The Limited (dollars in millions).

REQUIRED:Compute the conservatism ratios for both companies and comment on the differences. Which company is more conservative, andwhy?

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Financial Accounting in an Economic Context

ISBN: 978-0470635292

8th Edition

Authors: Jamie Pratt

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Question Posted: Nov 18, 2011 04:12 AM

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The following information was taken from the 2008 annual reports of Walgreens and The Limited (dollars in

Question:

The Limited Walgreens Net income before taxes Income tax expense: S3,164 $ 453 187 898 Current Deferred Total 260 SI,158 46 S 233 0.515 Effective tax rate 0.366

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Financial Accounting in an Economic Context

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