LarsonFFS06 - Chapter 6 Focus on Financial Statements...

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Focus on Financial Statements Online FFS 6-2 FFS 6-3 Chapter 6 Required Answer the following questions. a. Based on a review of the income statement for Leon’s on page I-4 in Appendix I at the end of the textbook, determine if Leon’s sells products or services? Explain your answer. b. Based on a review of WestJet’s income statement on page I-13 in Appendix I at the end of the textbook, determine if WestJet sells products or services? Explain your answer. c. The income statement for Leon’s shows a gross proFt of $188,428 (thousand) for the year ended December 31, 2002. Explain what this gross proFt represents. d. Did Leon’s have sufFcient gross proFt to cover operating expenses for the year ended December 31, 2002? e. Is the income statement format used by Leon’s a classiFed multi-step, a multi-step, or a single-step (compare the income statement for Leon’s to those in Exhibits 6.16, 6.17, and 6.18 on pages 283 and 284 of the textbook)?
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This note was uploaded on 08/22/2009 for the course ACCT 1202 taught by Professor Carmendima during the Winter '06 term at Niagara College.

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