Income Statement Review

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Business Finance

Description

Respond to each of the following:

Category:


1. Income Statement: Revenue, Cost of Goods Sold, Total Operating Expenses, Net Income & Earnings per Share

> What were the company's revenues, cost of goods sold, total operating expenses, net incomes and earnings per share (basic only) for the most recent three fiscal years?
> Note: total operating expenses in this case will not include anything that was reported in the cost of goods sold.

> Note: depending on what your company provides for details, you may have to calculate some of the different items.

2. Balance Sheet: Inventory

> What were the company's inventory values for the most recent three fiscal years?

Note: in providing these figures you may have to add some various components. For example, your company might list out the different items in the operating expenses and you will have to add them to obtain a total value.

Note: Some companies use different names. They may call it "Sales" vice "Revenue" or they might call it "Product" vice "Goods." Do not let the slight differences in names trip you up. Think through the problem and by all means, remember ask questions in class if you need help.


3. Notes to the Financial Statements

> What notes apply to the following items: (there may be several)

>> Revenues

>> Cost of Goods Sold

>> Inventory


4. Ratios:

> Present the following ratios for the most two recent years:

>> Gross Profit Margin

>> Profit Margin (aka. Net Income to Net Sales Ratio)

>> Inventory Turnover

Note: do not show any calculations. Only present the ratio value and round all ratios to one decimal place.

Note: All ratio information must be calculated from the audited financial statements.

Note that your url must be exact & it must be a direct link to the SEC Edgar system (not the company's home page or some investopedia stuff.) Think of it, Mr. Warren Buffett does not have time to wander the internet to find a specific document so be exact and double check the information provided.

Note: All information presented that was found in the financial reports must be documented.

Use APA style and in addition, page number(s) must be presented for each in text citation.

oExcept for directly quoted material, page numbers are not mandatory in APA style but I am making them mandatory for credit in this presentation.

Present source document as a bibliography complete with the exact url that will directly lead the reader to the exact SEC 10K annual report.

oAdditionally, you must provide a date accessed.

oAgain APA does not mandate this for fixed website, I am making it mandatory for credit.



The following is an example of what each student must submit for their report. Note: be brief, be exact, no long verbiage. You are provided details not an essay. Follow the outline provided.

*******************************************

Boston Beer Company by Michael J. Motes, CPA

Category:


1. Income Statement:

Item

(In thousands, except per share data)

2016

2014

2013

Revenue (Net Sales)

$906,446

$959,934

$903,007

Cost of Goods Sold

$446,776

$458,317

$437,996

Total Other Operating Expenses

$322,011

$345,443

$318,444

Net Income

$87,349

$98,414

$90,743

Earns Per Share (Basic)

$6.93

$7.46

$6.96

Notes:

(2016, p41)

(2016, p41)

(2015, p40)

Note: Net Sales is the value without the excise tax in this case. Excise Tax should not be part of the Revenue process in the case of breweries.

2. Balance Sheet: Inventory

Item

(In thousands,except per share data)

2016

2015

2014

Inventories

$52,499

$56,462

$51,307

Notes:

(2016, p40)

(2015, p40)

(2015, p39)

3. Notes to the Financial Statements:

>> Revenues: Note B (2016, p48) (2015, p47)

>> Cost of Goods Sold: Note B (2016, p48) (2015, p47)

>> Inventory: Notes B & C (2016, p45, 46 & 51) (2015, p44, 45, 49 & 50)


4. Ratios:

Item

2016

2015

Gross Profit Margin

50.7%

52.3%

Profit Margin

9.6%

10.3%

Inventory Turnover

8.2 times

8.5 times

Sources:

2016 Boston Beer Company Annual Report (2016 SEC 10K). (SEC Filing Date: 2/22/2017). https://www.sec.gov/Archives/edgar/data/949870/000... Access date March 16, 2017.

2015 Boston Beer Company Annual Report (2015 SEC 10K). (SEC Filing Date: 2/18/2016).http://www.sec.gov/Archives/edgar/data/949870/0001... Access date May 8, 2016.

Unformatted Attachment Preview

Hello, I would like to select U.S. Corporation Harley Davidson. Founded in the year 1903, the company has been renowned for motorcycles manufacturing. Financial Statements; • Income Statement (page 52, 2016 SEC 10-K) • Balance Sheet (Page 54, 2016 SEC 10-K) • Statements of Cash Flows (Page 56, 2016 SEC 10-K) • Statement of Stakeholders’ Equity (Page 57, 2016 SEC 10-K) There are at least four years of SEC 10-K reports for the Harley Davidson Corporation. The date the auditor signed the report of Independent Registered Public Accounting firm report is February 21, 2017 (Page 51, 2016 SEC 10-K). The following is the APA source with URL and date accessed that will provide the SEC-K annual reports for Harley Davidson Corporation. 2016 The Harley Davidson Corporation Annual Report (2016 SEC 10K). (SEC filing Date: 02/21/2017). https://www.sec.gov/Archives/edgar/data/793952/000079395217000007/hog1231x201610xk.htm. Access date November 02, 2017. Harley Davidson Corporation For the Fiscal Year ended: December 31, 2016 1. Item #1: a) Manufacturer of motorcycles and offering financial services (p. 3, 2016 SEC 10-K) 2. Items #6 & #7: a. Item #6: Selected financial data from the Income Statement and Balance Sheet (p. 22, 2016 SEC 10-K) b. Item #7: Management's Discussion and Analysis of Financial Condition and Results of Operations (p. 23, 2015 SEC 10-K) 3. Item #8: a. Ernst & Young, LLP (p. 51, 2016 SEC 10-K) b. The Board of Directors and Shareholders of Harley-Davidson, Inc. (p. 51, 2016 SEC 10-K) c. February 21, 2017 (p. 51, 2016 SEC 10-K) d. That Harley-Davidson’s financial statements are presented fairly in accordance with IFRS (p. 51, 2016 SEC 10-K) e. Financial Statements: Consolidated Statements of comprehensive income: FYs 2016 & 2015 & 2014 (p. 53, 2016 SEC 10-K) Consolidated balance sheets: FYs 2016 & 2015 & 2014 (p. 54, 2016 SEC 10-K) Consolidated Statements of cash flows: FYs 2016 & 2015 & 2014 (p. 56, 2016 SEC 10-K) Consolidated Statements of Stockholders' Equity: FYs 2016 & 2015 & 2014 (p. 57, 2016 SEC 10-K) f. Note 1. Summary of Significant Accounting Policies (p. 58, 2016 SEC 10-K) 2. Additional Balance Sheet and Cash Flow Information (p. 64, 2016 SEC 10-K) g. Notes: > Inventory: Note 2 (p. 64, 2016 SEC 10-K) > Current Assets: Note 3 (p. 66, 2016 SEC 10-K) > Property, Plant & Equipment: Note 2 (p. 64, 2016 SEC 10-K) > Goodwill: Note 4 (p. 66 & 67, 2016 SEC 10-K) > Current Liabilities: Note 3 (p. 64, 2016 SEC 10-K) > Long Term Debt: Note 10 (p. 76 & 77, 2016 SEC 10-K) 4. Item #9A: Controls & Procedures: a. Internal Controls Items (p. 110, 2016 SEC 10-K) b. Ernst & Young, LLP (p. 51, 2016 SEC 10-K) 5. CEO who signed the report: Matthew S. Levatich (p. 115, 2016 SEC 10-K) Source: 2016 The Harley Davidson Corporation Annual Report (2016 SEC 10K). (SEC filing Date: 02/21/2017). https://www.sec.gov/Archives/edgar/data/793952/000079395217000007/hog1231x201610xk.htm. Access date November 02, 2017.
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Explanation & Answer

See the attached file.

Harley Davidson Corporation
Category:
1. Income statement:
Item

2016

2015

2014

$6,228, 508

(In thousands expect per share data)
Revenue (Net sales)

$5,996,458

$5,995,402,

Costs of goods sold

$3,419,710

$3,356,284

Total Other Operating Expenses

$1,5...


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