Presented below are condensed data from the financial statements of Gallo Factory for 2017 and 2016.The figures are expressed in thousands.Use this information to answer the questions that follow.
Required: Based on the information provided,is Gallo Factory considered a business or nonbusiness entity? How do you know by examining the financial statements?
Statement A Total current assets Property, plant, and equipment (net of accumulated depreciation) Investments Other assets Total assets Total current liabilities Long-term debt Deferred income taxes and contingencies Total liabilities Total stockholders’ equity Total liabilities and stockhol ders’ equity Statement B Net sales Cost of sales Gross profit Selling, general, and administrative expenses Other income (expense) Income (loss) before income taxes Income tax expense Net income (loss) 2017$82,30963,4513033,438$149,501$33,92820,4914,174$58,593$90,908$149,5012017$209,203136,225$72,97863,895693$9,776$3,5346,2422016$80,08062,7241,0612,606$146,471$28,66825,6765,208$59,552$86,919$146,4712016$174,206114,284$59,92253,520(118)$6,284$3,388$3,896
Definitions:
Urinary Incontinence
The loss of bladder control, leading to an involuntary leakage of urine.
Daily Oral Fluids
The recommended intake of liquids consumed through the mouth on a daily basis to maintain hydration and bodily functions.
Spermicidal Contraceptive
A type of birth control that contains chemicals to kill sperm or prevent it from moving, thus preventing pregnancy.
Urinary Tract Infections
Infections occurring anywhere along the urinary tract, including the bladder and kidneys, often caused by bacteria.