Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 81

As a sales representative for a publicly traded pharmaceutical company, you become aware of new evidence that one of your company's main drugs has significant life-threatening side effects that were not previously reported. Your company has a significant inventory of this drug. What income statement accounts other than Net Sales will be affected by the news A friend asks you whether he should invest in your company. What should you say