Income Statement – use the income statement from the SEC Form 10-K for the most recent fiscal year.

1. State your company’s fiscal year end date. If it is not December 31^st, why do you believe they chose to use the date they did?
2. State the method, single-step or multiple-step, used in the statement. If it is a hybrid, explain.
3. Calculate the gross profit ratio for each of the years reported. Briefly evaluate the trend of these results.
4. Explain whether operating income is increasing or decreasing for the years reporte Explain the difference between operating income and net income. (not in terms of dollars but in terms of meaning)
5. Describe the primary source of revenue for this company. What might that say about the ability of this company to do well in the future?
6. Explain what basic earnings per share is. Show the approximate computations that the company used to compute this amount.
7. Convert the income statement to a common sized income statement (in other words, restate everything as a percentage of total revenues. You will need to export the income statement to Excel for this). Based upon the common size income statement, is there anything surprising to you?  

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NVIDIA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) January 26, 2020 $ Revenue Cost of revenue Gross profit Operating expenses Research and development Sales, general and administrative Total operating expenses Income from operations Interest income Interest expense Other, net Total other income (expense) Income before income tax Income tax expense (benefit) Net income $ Net income per share: Basic $ Diluted $ Weighted average shares used in per share computation: Basic Diluted Year Ended January 27, 2019 10,918 $ 4,150 6,768 2,829 1,093 3,922 2,846 178 (52) (2) January 28, 2018 9,714 3,892 5,822 1,797 815 2,612 3,210 69 (61) (22) (14) 11,716 $ 4,545 7,171 2,376 991 3,367 3,804 136 (58) 14 92 3,896 124 2,970 174 (245) 2,796 $ 4,141 $ 4.59 $ 6.81 $ 4.52 $ 6.63 $ 609 608 618 625 See accompanying notes to the consolidated financial statements. 3,196 149 3,047 5.09 4.82 599 632 NVIDIA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) January 26, 2020 $ Revenue Cost of revenue Gross profit Operating expenses Research and development Sales, general and administrative Total operating expenses Income from operations Interest income Interest expense Other, net Total other income (expense) Income before income tax Income tax expense (benefit) Net income $ Net income per share: Basic $ Diluted $ Weighted average shares used in per share computation: Basic Diluted Year Ended January 27, 2019 10,918 $ 4,150 6,768 2,829 1,093 3,922 2,846 178 (52) (2) January 28, 2018 9,714 3,892 5,822 1,797 815 2,612 3,210 69 (61) (22) (14) 11,716 $ 4,545 7,171 2,376 991 3,367 3,804 136 (58) 14 92 3,896 124 2,970 174 (245) 2,796 $ 4,141 $ 4.59 $ 6.81 $ 4.52 $ 6.63 $ 609 608 618 625 See accompanying notes to the consolidated financial statements. 3,196 149 3,047 5.09 4.82 599 632

Answer rating: 100% (QA)

Companys fiscal year end date January 26th Method used Multiplestep Gross profit ratio Year Gross profit ratio 2020 380 2019 394 2018 403 The gross profit ratio has been decreasing slightly over the p... View the full answer