Infografix Corporations consolidated sales for 2010 were $26.6 billion, and expenses totaled $24.8 billion. Infografix operates worldwide
Question:
Foreign-currency translation adjustments.......................................... $(202)
Unrealized holding ______ on available-for-sale investments.......... (328)
As you consider an investment in Infografix stock, some concerns arise. Answer each of the following questions:
1. What do the parentheses around the two dollar amounts signify?
2. Are these items reported as assets, liabilities, stockholders equity, revenues, or expenses? Are they normal-balance accounts, or are they contra accounts?
3. Did Infografix include these items in net income? in retained earnings? In the final analysis, how much net income did Infografix report for 2010?
4. Should these items scare you away from investing in Infografix stock? Why or why not? (Challenge)
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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