GOME ( is the leading chain retailer of consumer electronic products and household appliances in China.
1. Locate the notes to its December 31, 2008, financial statements at the company’s Website, and read note 3 Revenue Recognition, first paragraph only. When is revenue recognized by GOME?
2. Refer to GOME’s financials in Appendix A. What is GOME’s profit margin for the year ended December 31, 2008?
3. Refer to GOME’s financials in Appendix A. Compute GOME’s current ratio for both the current year and the prior year. (GOME’s balance sheet is in a slightly different format than the U.S. GAAP examples in the chapter: current assets follow noncurrent assets, and current liabilities follow noncurrent liabilities.)

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