The following information was taken from the 2012 annual reports of Walgreens and The Limited (dollars in
Question:
The following information was taken from the 2012 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:
Walgreens $3,376 The Limited Net income before taxes $1,281 Income tax expense: 517 Current Deferred Total 1,010 239 $1,249 0.370 528 0.412 Effective tax rate
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