Prepare a common size income statement. Express each item on the income statement as a percent of
Fantastic news! We've Found the answer you've been seeking!
Question:
Prepare a common size income statement. Express each item on the income statement as a percent of total sales or revenue. Do this for all years on the income statement. Look for major differences over time and between companies. Do any patterns emerge? Some questions to consider:
- What are the major expenses?
- Are there any unusual or discontinued items? Are they large in magnitude?
- Was the company more or less profitable when compared to the prior year?
- We need to calculate Net income/ Sale to get profitability ratios.
Transcribed Image Text:
12 Months Ended Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2018 Income Statement [Abstract] Revenues [1] $ 41,908 $ 41,172 $ 40,825 Costs and expenses: [2] (2] [2] Cost of sales 8,692 8,251 8,987 Selling, informational and administrative expenses Research and development expenses Amortization of intangible assets Restructuring charges and certain acquisition-related costs (Gain) on completion of Consumer Healthcare JV transaction Other (income)/deductions-net Income from continuing operations before provision/(benefit) for taxes on income Provision/(benefit) for taxes on income 11,615 12,750 12,612 9,405 8,394 7,760 3,436 4,462 4,736 600 601 1,058 (6) (8,086) 669 3,314 2,077 [31.(4] 7,497 11,485 3,594 477 618 (266) Income from continuing operations 7,021 10,867 3,861 Income from discontinued operations-net of tax Net income before allocation to noncontrolling interests Less: Net income attributable to noncontrolling interests 5,435 16,302 2,631 7,328 9,652 11,188 36 29 36 Net income attributable to Pfizer Inc. common shareholders $9,616 $ 16,273 $11,153 Earnings per common share-basic: Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per $1.26 $1.95 $0.65 share) Income from discontinued operations-net of tax (in dollars per share) Net income attributable to Pfizer Inc. common shareholders (in dollars per share) Earnings per common share-diluted: Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) Income from discontinued operations-net of tax (in dollars per share) Net income attributable to Pfizer Inc. common shareholders (in dollars per share) Weighted-average shares-basic Weighted-average shares-diluted 0.47 0.98 1.25 1.73 2.92 1.90 1.24 1.91 0.64 0.47 0.96 1.23 $1.71 $2.87 $1.87 5,555 5,569 5,872 5,632 5,675 5,977 On November 16, 2020, we completed the spin-off and the combination of our Upjohn Business with Mylan to form Viatris. On December Exclusive of amortization of intangible assets, except as disclosed in Note 1L. [1] [2] [3] [4] 2019 v. 2018 -The domestic income in 2019 versus domestic loss in 2018 was mainly related to the completion of the Consumer 2020 v. 2019 -The domestic loss in 2020 versus domestic income in 2019 was mainly related to the non-recurrence of the gain on the 12 Months Ended Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2018 Income Statement [Abstract] Revenues [1] $ 41,908 $ 41,172 $ 40,825 Costs and expenses: [2] (2] [2] Cost of sales 8,692 8,251 8,987 Selling, informational and administrative expenses Research and development expenses Amortization of intangible assets Restructuring charges and certain acquisition-related costs (Gain) on completion of Consumer Healthcare JV transaction Other (income)/deductions-net Income from continuing operations before provision/(benefit) for taxes on income Provision/(benefit) for taxes on income 11,615 12,750 12,612 9,405 8,394 7,760 3,436 4,462 4,736 600 601 1,058 (6) (8,086) 669 3,314 2,077 [31.(4] 7,497 11,485 3,594 477 618 (266) Income from continuing operations 7,021 10,867 3,861 Income from discontinued operations-net of tax Net income before allocation to noncontrolling interests Less: Net income attributable to noncontrolling interests 5,435 16,302 2,631 7,328 9,652 11,188 36 29 36 Net income attributable to Pfizer Inc. common shareholders $9,616 $ 16,273 $11,153 Earnings per common share-basic: Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per $1.26 $1.95 $0.65 share) Income from discontinued operations-net of tax (in dollars per share) Net income attributable to Pfizer Inc. common shareholders (in dollars per share) Earnings per common share-diluted: Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) Income from discontinued operations-net of tax (in dollars per share) Net income attributable to Pfizer Inc. common shareholders (in dollars per share) Weighted-average shares-basic Weighted-average shares-diluted 0.47 0.98 1.25 1.73 2.92 1.90 1.24 1.91 0.64 0.47 0.96 1.23 $1.71 $2.87 $1.87 5,555 5,569 5,872 5,632 5,675 5,977 On November 16, 2020, we completed the spin-off and the combination of our Upjohn Business with Mylan to form Viatris. On December Exclusive of amortization of intangible assets, except as disclosed in Note 1L. [1] [2] [3] [4] 2019 v. 2018 -The domestic income in 2019 versus domestic loss in 2018 was mainly related to the completion of the Consumer 2020 v. 2019 -The domestic loss in 2020 versus domestic income in 2019 was mainly related to the non-recurrence of the gain on the
Expert Answer:
Answer rating: 100% (QA)
Answer Step by Step Explanation Vertical analysis It is an analysis which lists every item in a fina... View the full answer
Related Book For
Accounting Information Systems basic concepts and current issues
ISBN: 978-0078025334
3rd edition
Authors: Robert Hurt
Posted Date:
Students also viewed these finance questions
-
Prepare a Common Size Analysis and Trend Analysis for three years for the Income Statement, Balance Sheet and Cash Flows Statement of Excel Corporation (There is a separate worksheet for each of...
-
. Prepare an income statement and a common size income statement from the following information. Sales Cost of goods sold General and administrative expenses Depreciation $525,000.00 $200,000.00...
-
Please match each item on the left with the most appropriate item on the right. 1. Acknowedged and approved 2. Business exchange technology 3. Context 4. Dragon Tag 5. Focus effort on analysis 6....
-
McGuire Industries prepares budgets to help manage the company. McGuire is budgeting for the fiscal year ended January 31, 2021. During the preceding year ended January 31, 2020, sales totaled $9,200...
-
As a successful sales manager at Ford of Damocles, a large auto dealership in Damocles, Ohio, you believe theres a 30% chance that youre going to be promoted this week to Assistant VP (Event A1) and...
-
Wilson Company signed notes to make the following two purchases on January 1, 2012: a. A new piece of equipment for $ 60,000, with payment deferred until December 31, 2013. The appropriate interest...
-
Identify the four components of a use case and how they affect each other.
-
Holmes Company reported the following balance sheets at December 31, 2017 and 2018: Its income statement for 2018 was as follows: ($ in millions)...
-
2. Find the worst-case time complexity of the OpenMystery algorithm below. Input: n: positive integer 1 Algorithm: OpenMystery 2 Let open be a Boolean array of size n 3 Initialize open to false 4...
-
Tea has been in the limelight recently thanks to increasing global demand, especially in emerging economies like China and India. China, India, Kenya, and Sri Lanka are some of the largest producers...
-
Discuss how the current economic restrictions caused by COVID19 affect Australian reporting entities in applying AASB 16 Leases. Discuss how the current economic restrictions caused by COVID19 affect...
-
How does the Doppler effect provide evidence that we live in an expanding universe?
-
State whether each of the following is an example of a physical or chemical property of matter: (a) Carbon dioxide escapes when a soda can is opened. (b) A bronze statue turns green. (c) A silver...
-
What is it called when evaporation takes place beneath the surface of a liquid?
-
In what periods has the United States had twin deficits? In what periods did the deficits move in opposite directions?
-
Explain how you are able to see a wide range of colors even though there are only three kinds of light-sensitive cells (cones) in your eyes.
-
Question 2 5 Not yet answered Marked out of 1 . 0 0 Flag question What is the primary function of the Data Definition component of a Database Management System ( DBMS ) ? a . Creates copies of the...
-
Consider a closed, rigid tank with a volume of 0.8L, filled with cold water initially at 27C. The tank is filled such that there are no voids (air pockets) within. The initial pressure within the...
-
As you learned in the chapter, designing and implementing accounting information systems requires judgment and critical thinking. Each chapter will include an exercise like this one to help you...
-
Indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true; explain when the statement is true. a. All...
-
a. Consider the May Company/Federated Department Stores data flow diagram presented in Figure 14.2 . What information would you want to capture in the shareholder database to facilitate the...
-
Baggai Enterprises has an ROA of 10 percent, retains 30 percent of earnings, and has an equity multiplier of 1.25. Mondale Enterprises also has an ROA of 10 percent, but it retains two-thirds of...
-
International Business Machines (NYSE: IBM), which currently pays a dividend of \($3.40\) per share, has been the subject of two other examples in this reading. In one example, an analyst estimated...
-
An analyst is preparing a forecast of dividends for Hoshino Distributors for the next five years. He uses a spreadsheet model with the following assumptions: Sales are $100 million in Year 1. They...
Study smarter with the SolutionInn App