The following information was taken from the 2019 annual reports of Wal greens and CVS, competing drug
Question:
The following information was taken from the 2019 annual reports of Wal greens and CVS, competing drug store chains (dollars in millions):
INSTRUCTIONS:
Compute the conservatism ratios for both companies and comment on the differences. Would you consider them to be conservative or aggressive in their reporting? Which company is more conservative, and why?
Transcribed Image Text:
Walgreens CVS Net income before taxes $4,527 8,997 Income tax expense: Current 488 3,015 Deferred 100 (649) Total $588 $2,366 Effective tax rate 0.130 0.263
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
The conservatism ratio is a measure of a companys tendency to anticipate potential losses and expens...View the full answer
Answered By
Maurat Ivan
I have been working in the education and tutoring field for the past five years, and have gained a wealth of experience and knowledge in this area. I have a bachelor's degree in education, and have completed additional coursework in teaching and tutoring.
In my previous roles, I have worked as a teacher in both private and public schools, teaching a variety of subjects including math, science, and English. I have also worked as a private tutor, providing one-on-one tutoring to students in need of additional support and guidance.
In my current role, I work as an online tutor, providing virtual tutoring services to students around the world. I have experience using a variety of online tutoring platforms and technologies, and am comfortable working with students of all ages and skill levels.
I am passionate about helping students succeed and reach their full potential, and I believe that my education and tutoring experience make me an excellent candidate for a tutoring job at SolutionInn. I am confident that my knowledge, skills, and experience will enable me to provide top-quality tutoring services to students on the SolutionInn platform.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The following information was taken from the 2019 annual report of Coca-Cola ( dollar and share amounts in millions): a. At what average price did the company repurchase its shares in 2017? b. At...
-
The following information was taken from an annual report of Falconer Corporation, a manufacturer and wholesaler of farm equipment: Property, Plant, and Equipment (in millions): a. Compute the...
-
The following information was taken from the annual manufacturing overhead cost budget of Coen Company. Variable manufacturing overhead costs ........... $46,200 Fixed manufacturing overhead costs...
-
Calculate the current and quick ratio at the end of eachyear.Note: Round your answers to 1 decimal place.b. Assuming a 365-day year for all calculations, compute thefollowing:i. The collection pe...
-
A six-month non-interest-bearing note issued on September 30, 2010 for $3300 was discounted at 11.25% on December 1. What were the proceeds of the note?
-
How could the relationship between a systems analyst and a user help to avoid bias in output design?
-
Find the area under the standard normal curve between z = 1.5 and z = 1.25.
-
On November 1, 2015, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal total payments each year on October 31. Required 1....
-
The volume of the solid obtained by rotating the region bounded by about the line x = y = x, y = 3x, 3 can be computed using the method of washers via an integral with limits of integration a = and b...
-
"Manfluencers" is a term that describes a new marketing trend. To what does this refer? Describe two examples of how marketers have responded to the "manfluencers" trend?
-
The following information was taken from the 2019 annual report of Emerson, a leader in process management, technology, network power, and industrial automation (dollars in millions): INSTRUCTIONS:...
-
The 2019 IFRS-based balance sheet published by Volkswagen AG, the well-known German automaker, listed an account called "provisions" (divided into current and noncurrent categories) with a total...
-
Find the lowest common multiple of the following numbers: a. 6, 14 b. 4, 15 c. 2, 7, 10 d. 3, 9, 10 e. 3, 7, 11
-
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a...
-
Given the following tax structure: Taxpayer Mae Pedro Salary $ 39,000 $ 47,000 Total tax $ 1,794 ??? Required: a. What is the minimum tax that Pedro should pay to make the tax structure vertically...
-
A researcher is investigating the impact of a firm's capital intensity on its labour productivity using data for the year 2014 for a sample of manufacturing firms from Germany, France, Sweden, Italy...
-
Presented below are the 2024 income statement and comparative balance sheets for Santana Industries. SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2024 ($ in thousands) Sales...
-
Given the nature of corporate financing and investment decisions, that focus on long-term operations is appropriate. In periods of rapid change where long-term outlooks are uncertain or in flux, a...
-
Suppose that the random variable X has a probability density function f(x) = 2x for 0 < x < 1. Find the probability density function and the expectation of the random variable Y in the following...
-
On July 1, 2011, Flashlight Corporation sold equipment it had recently purchased to an unaffiliated company for $480,000. The equipment had a book value on Flashlights books of $390,000 and a...
-
(a) Should business transaction debits and credits be recorded directly in the ledger accounts? (b) What are the advantages of first recording transactions in the journal and then posting to the...
-
(a) What is a ledger? (b) What is a chart of accounts and why is it important?
-
Two students are discussing the use of a trial balance. They wonder whether the following errors, each considered separately, would prevent the trial balance from balancing. (a) The bookkeeper...
-
Exploring Variable Length Parameter Lists The file Parameters.java contains a program to test the variable length method average from Section 7.5 of the text. Note that average must be a static...
-
How would I write a test case for the following steps so that the test cases run properly @Test void dequeueItemsHasRightValuesAndSize() { Queue testQ = new Queue (); int result; enqueueValues(testQ,...
-
Analyse the quality of the Java codes below public static boolean leap(int y) { String tmp = String.valueOf(y); if (tmp.charAt(2) == '1' || tmp.charAt(2) == '3' || tmp.charAt(2) == 5 || tmp.charAt(2)...
Study smarter with the SolutionInn App