In Its 2000 Report, a Company Presented the Following Data

question 142

Essay

In its 2000 report, a company presented the following data regarding its sales (in millions of dollars), and net income (in millions of dollars). $$\begin{array} { | l | c c c c c | } \hline \text { Year } & 1996 & 1997 & 1998 & 1999 & 2000 \\\hline \text { Sales } & 70 & 97 & 80 & 55 & 185 \\\text { Net Income } & 1.6 & 5.2 & 4.1 & 2.4 & 7.1 \\\hline\end{array}$$ The bar chart below was used to present these data. Assume that you are an unscrupulous statistician and want to make the data appear more positive than they really are. Redraw the graph by being selective about which years to include, getting the desired effect.

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Definitions:

Functional Currency

The functional currency is the currency of the primary economic environment in which an entity operates and conducts its business transactions.

Balance Sheet Items

Components that make up a balance sheet, including assets, liabilities, and shareholders' equity.

Historic Rate

The exchange rate used to convert foreign currency transactions to the reporting currency at the date of the transaction, for accounting purposes.

Income Statement Items

Elements found in the income statement, including revenues, expenses, gains, and losses, which together determine the net income of a company.