(Solution) - In its year end earnings announcement press release Longwell Co -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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In its year-end earnings announcement press release, Longwell Corp. announced that its earnings increased by $15 million relative to the previous year. This represented a 20% increase. Inspection of its income statement reveals that the company reported a $20 million gain under ?Other revenues and gains? from the sale of one of its factories. Discuss the implications of this gain from the perspective of a potential investor.