Case Study Deloitte Case 09-8 Classified information

Deloitte 09-8 Classified information - Case Study Example In the year 2006, the gross profit increased by 8.6%, with the total net sales increasing to a figure of $ 86.5 million, the sassy Spa division yielding a net profit of $ 11.2 million. Contribution from the ‘Sassy Spa Division,’ therefore, increased by a whopping 287.18 %. This shows that the other divisions did not contribute much to increase in sales revenue in 2006. Contribution to the total profit in the year 2006 was therefore from sale of a fixed asset i.e. the sale of corporate HQ ($ 1.7 million), and winning a lawsuit against a supplier yielding further revenue of $ 2.7 million. This contributed to a non-operating income of $ 4.4 million in the financial year 2006. ‘420-10-S99’ codification standard defines such income as restructuring charges and may not be presented in an income statement as extraordinary items. Paragraph ‘225-20-45-16’ states that items which do not meet the classification criteria of an extraordinary item should be reported as component of income. Therefore, this figure can be added to the gross profit in 2006, yielding net revenue of $ 34.8