Trends of sales and profits over time


Investors are vitally interested in a company's sales and profits, and its trends of sales and profits over time. Consider Foot Locker's sales and net income (net loss) during the period from 2005 through 2007. Compute the percentage increase or decrease in net sales and also in net income (net loss) from 2005 to 2007. Which item grew faster during this two-year period, net sales or net income (net loss)? Can you offer a possible explanation for these changes?

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Accounting Basics: Trends of sales and profits over time
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