Use the TELUS financial statements in Appendix A to address the following questions.
Requirements
1. During fiscal 2011, TELUS's net earnings increased over 2011. Prepare a common-size income statement for 2011 and 2010.
2. Discuss the results of TELUS based on the common-size income statement.
3. Consider this information from the CFO's letter to investors in the 2011 Annual Report:
TELUS' long-term strategy of investing in our core network assets to drive data growth in both wireline and wireless has generated significant momentum and positions the Company for continued success. In 2011, we surpassed $10 billion of revenue with higher than expected revenue growth of six per cent and generated earnings per share (EPS) growth of 15 percent due to significant lower financing costs and higher operating income.
Given the common-size income statement prepared in Requirement 2 and the comments made by the CFO's letter to investors, what is the company's outlook for the future?