This case requires students to evaluate financial reporting practices adopted by a small apparel company. The company’s owner/manager has recently taken the business in a new direction, and is asking for help in determining whether the company’s existing financial accounting policies continue to be appropriate and how alternative policies would affect the reported financial results. This case will require students to apply knowledge of financial accounting and financial statement ratios to judge the appropriateness of selected accounting policies. This case is designed for use in introductory and intermediate financial accounting courses that aim to develop students’ critical thinking skills.
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