Indicator of a firms financial success


Question: Provide an example from the Internet that demonstrates a situation in which a company's net profits looked good in the statements, but the gross or operating profits presented a different picture.

Discuss how this might have occurred.

"Why is the bottom-line figure, net income, not necessarily a good indicator of a firm's financial success?" (Hint: Look for indicators like liquidity or solvency to answer this question.)

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Accounting Basics: Indicator of a firms financial success
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