Locate the income statement in your company’s most recent 10-K, and respond to the following quesTons. SomeTmes the income statement is called Consolidated Statements of Earnings, ConsolidatedStatements of OperaTons, or something similar
Locate the income statement in your company’s most recent 10-K, and respond to the following questions. Sometimes the income statement is called Consolidated Statements of Earnings, Consolidated Statements of Operations, or something similar. Make sure that you are using your company’s most recent fiscal years.
By the way, you should ignore the Statement of Comprehensive Income because that’s a financial statement covered in more advanced accounting classes. We won’t be doing anything with that statement in our introductory accounting class. THERE ARE TWO PARTS PLEASE DO BOTH.
- Category: Revenue and Net Income
Identify the following amounts for the two most recent years:
- Net Sales (or Total Sales if your company has more than one source of revenue) Some companies use the term Revenue instead of Sales.
- Cost of Goods Sold (aka Cost of Products, Cost of Sales, Cost of Services, etc.)
- Gross Profit (aka Gross Margin)
- Category: Analysis
Calculate the following ratios (show and label your calculations) for the two most recent years and comment on the results of your ratio analysis.
- Gross profit margin = Gross profit ÷ Net sales × 100
- Net profit margin = Net income available to common shareholders ÷ Net sales × 100
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