The Following Information Is from L&H's 2004 Income Statement -Pre-Tax Earnings Growth of 50% for 2005 Has Just Been
The following information is from L&H's 2004 income statement:
-Pre-tax earnings growth of 50% for 2005 has just been announced after the close of trading, but further disclosure will not be made until tomorrow. That night, you review 2004 and conclude that, all else being equal, in 2005
A) Sales decreased by approximately $1,400
B) Sales increased by approximately $2,600
C) Investment income doubled, enabling L&H to cut interest expense by $500
D) L&H sold investments and/or fixed assets, realizing a gain of $1,300
Correct Answer:
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