The Income Statements for Infonext Corporation for 2007 and 2008

question 11

Multiple Choice

The income statements for Infonext Corporation for 2007 and 2008 are provided below:
-Refer to the information above. Assume that both sales and cost of goods sold will grow at the same rates that they each grew last year. Project the 2009 sales and cost of goods sold for
Infonext Corporation. Round your answer to the nearest dollar.

• A)Sales = $24,200; Cost of goods sold = $15,730
• B)Sales = $24,200; Cost of goods sold = $15,445
• C)Sales = $23,980; Cost of goods sold = $15,587
• D)none of the above

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Definitions:

Sale of Land

A transaction involving the transfer of ownership of a parcel of land from one party to another.

Unrealized Profit

Profit that has been generated on paper through an investment but has not yet been realized through the sale of that investment.

Consolidating Entries

Journal entries made in the preparation of consolidated financial statements to remove the effects of intercompany transactions among the entities within a consolidated group.

External Parties

Individuals or entities that are not part of a firm but are interested in its financial information, such as investors, creditors, or regulatory agencies.