Required
a. Based on a review of the income statement for Danier in Appendix II at the end of the textbook, determine if Danier sells products or services. Explain your answer.
b. Based on a review of Westjet's income statement in Appendix II at the end of the textbook, determine if Westjet sells products or services. Explain your answer.
c. The income statement for Danier shows a gross profit of $86,288 (thousand) for the year ended June 25, 2011. Explain what this gross profit represents.
d. Did Danier have sufficient gross profit to cover operating expenses for the year ended June 25, 2011?
e. Is the income statement format used by Danier a classified multi-step, a multi-step, or a single-step? (Compare the income statement for Danier to those in Exhibits 5.15, 5.16, and 5.17)
f. Refer to the balance sheets for Danier and Westjet in Appendix II at the end of the textbook. Both balance sheets include Inventory. Explain how Inventory is unique for each of these companies.