The Following Information Is Taken from Just Pants Financial Statements

question 13

Essay

The following information is taken from Just Pants financial statements (amounts in thousands):
Inventory Footnote: If the first-in, first-out method of accounting for inventory had been used, inventory would have been approximately $26.9 million and $25.1 million higher than reported at 12/31/2005 and 12/31/2004, respectively.
Required:

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Definitions:

Professional Race-Car Driver

An individual who competes in auto racing events professionally and as a career, often under contract with racing teams or sponsors.

Actual Authority

The explicit power given to an agent or representative by a principal, allowing them to make decisions and act on the principal's behalf.

Apparent Authority

Apparent authority refers to a situation where a person appears to have the authority to act on behalf of another (such as an employer) even if no actual authority has been granted, leading others to reasonably believe in that authority.

Mutual Agreement

An accord reached by two or more parties who have made concessions to each other to resolve a conflict or reach a decision.