Income Statement – use the income statement from the SEC

Income Statement – use the income statement from the SEC Form 10-K for the most recent fiscal year. State your company’s fiscal year end date. If it is not December 31st, why do you believe they chose to use the date they did? State the method, single-step or multiple-step, used in the statement. If it is a hybrid, explain. Calculate the gross profit ratio for each of the years reported. Briefly evaluate the trend of these results. 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) 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? Explain what basic earnings per share is. Show the approximate computations that the company used to compute this amount. In the footnotes, what does the company say about its policy for revenue recognition? Use your words. Don’t cut and paste. In the footnotes, what does the company say about depreciation expense? What method(s) of depreciation does the company use? What estimates does the company make to compute this expense? 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? Statement of

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