(Solution) - Infografix Corporation s consolidated sales for 2014 were 26 6 million and -(2025 Original AI-Free Solution)

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Infografix Corporation's consolidated sales for 2014 were $26.6 million and expenses totalled $24.8 million. Infografix operates worldwide and conducts 37% of its business outside Canada. During 2014, Infografix reported the following items in its financial statements (amounts in millions):
Foreign-currency translation adjustments ...................................................... $(202)
Unrealized holding on non-strategic investments .......................................... (328)
As you consider an investment in Infografix shares, some concerns arise. Answer the following questions:
1. What do the parentheses around the two dollar amounts signify?
2. Are these items reported as assets, liabilities, shareholders' equity, revenues, or expenses? Are they normal-balance accounts, or are they contra accounts?
3. Are these items reason for rejoicing or sorrow at Infografix? Are Infografix's emotions about these items deep or only moderate? Why?
4. Did Infografix include these items in net income? Did it include these items in retained earnings? In the final analysis, how much net income did Infografix report for 2014?
5. Should these items scare you away from investing in Infografix shares? Why or why not?