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:
Creativity
The capacity to generate unique and beneficial ideas or answers.
Effective Managers
Effective Managers are individuals who achieve organizational goals through planning, organizing, leading, and controlling resources efficiently and effectively.
Creativity
The ability to produce original and valuable ideas or solutions by thinking beyond traditional frameworks or patterns.
Employees
Individuals who are hired by an organization to perform specific duties in exchange for compensation.