Case 3.2 Applied Materials Comprehensive Analysis Case Using the Financial Statement Analysis Template

Each chapter in the textbook contains a continuation of this problem. The objective is to learn how to do a comprehensive financial statement analysis in steps as the content of each chapter is learned. Using the 2022 Applied Materials Form 10-K, complete the following requirements:

a. Create a common-size income statement based on the 2022 Consolidated Statements of Operations below. Make any necessary corrections before printing out both your input and the common-size income statement.

b. Analyze the income statement of Applied Materials. Write a summary that includes important points that an analyst would use in assessing the profitability of Applied Materials.

APPLIED MATERIALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts)