What would have been the income before income taxes


Response to the following questions:

1. For a recent period, Circuit City Stores reported accrued expenses of $202,675 thousand. For the same period, Circuit City reported a loss before income taxes of $1,240 thousand. If accrued expenses had not been recorded, what would have been the income (loss) before income taxes?

2. The balance sheet for Ford Motor Company as of December 31, 2004, includes $31,187 million of accrued expenses as liabilities. Before taxes, Ford Motor Company reported a net income of $4,853 million. If the accruals had not been recorded at December 31, 2004, how much would net income or net loss before taxes have been for the year ended December 31, 2004?

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Financial Accounting: What would have been the income before income taxes
Reference No:- TGS02130873

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