Question

Verizon Communications, Inc., is one of the world’s largest providers of communication services. The following information, taken from the company’s annual reports, is available for the years 2013, 2012, and 2011:
Required
a. Divide the class into groups of four or five students. Organize the groups into three sections.
Assign each section of groups the financial data for one of the preceding accounting periods.
Group Tasks
(1) Determine the amount of net income for the year assigned.
(2) How does the result in item 1 above affect the retained earnings of the company?
(3) Compute the percentage growth rate for each year.
(4) Have representatives from each section put the income statement for their respective year on the board.
Class Discussion
b. Have the class discuss the trend in revenue and net income.
The following data are based on information in the 2013 annual report of Cracker Barrel Old Country Store. As of September 30, 2013, Cracker Barrel operated 624 restaurants and gift shops in 42 states. Dollar amounts are in thousands.
Required
- Calculate the company’s net income and retained earnings for 2012 and 2013.
- Which increased (or decreased) by the greatest percentage amount: revenues or net income?
Show your computations.
- For each year, calculate the company’s net income as a percentage of its revenues. Show your computations.


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  • CreatedApril 20, 2015
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