Chapter 3, Problem 1CP

1.

To determine

State the amounts of the largest expense on the income statement for the year ended 28^th January 2012 and describe the transaction represented by the expense.

2.

To determine

Ascertain the amount that has been collected from the customers.

3.

To determine

Explain the reason behind the stockholders’ assumption towards the earnings equal net cash inflows is valid. Provide explanation, if the stockholders’ assumption is not valid.

4.

To determine

Describe the purpose of income statement versus a balance sheet.

5.

To determine

Compute the net profit margin for each year.