Many e-tailers (retailers via the internet) were not profitable in their early year. Analysts who believed in
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(a) Why might analysts be instead in companies that were not recording profits?
(b) What specific effect did the new FASB rule have on the income statement of companies like Amazon.com, and why would these companies lobby aggressively against the rule?
(c) What impact would this new rule have on the reported cash flows of the company?
(d) Do you think that the stock market prices of e-tailers would decrease in response to this ruling by the FASB? Why?
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