The following information was taken from the 2008 annual reports of Walgreens and The Limited (dollars in
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The following information was taken from the 2008 annual reports of Walgreens and The Limited (dollars in millions).
REQUIRED:Compute the conservatism ratios for both companies and comment on the differences. Which company is more conservative, andwhy?
Transcribed Image Text:
The Limited Walgreens Net income before taxes Income tax expense: S3,164 $ 453 187 898 Current Deferred Total 260 SI,158 46 S 233 0.515 Effective tax rate 0.366
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