Use the financial information of Carnival Corporation for the 2007 fiscal year to answer the following questions. This information can be found on either the annual report or the SEC 10-K filing at by following the links to Investor Relations.
(a) Using Carnival’s November 30, 2007, Income Statement (titled Consolidated Statements of Operations), answer the following questions.
(1) Why is Interest Income separated from Revenues?
(2) Does Carnival Corporation primarily provides a service or a product? How does this information affect the company’s Cost of Goods Sold?
(3) List several sources from which Carnival obtains its operating revenues.
(b) Using Carnival’s November 30, 2007, Balance Sheet, answer the following questions.
(1) How much does Carnival list in total assets?
(2) What is a trade mark, and why is its how non as an asset? (Hint: Note number2to the financial statements may help you.)
(3) Carnival lists its Property and Equipment as ‘‘net,’’ which means that depreciation has been subtracted from the original cost. How much did Carnival pay for its PP&E, and how much has it been depreciated? (Hint: You will find this information in the Notes to the Financial Statements.)
(4) Why does Carnival list its Property and Equipment at historical cost rather than fair market value?
(5) Why are customer deposits listed as liabilities instead of revenues?
(6) Discuss Carnival’s current portion of longterm debt.
(7) How much has Carnival generated in profits and not distributed to its stockholders?

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