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ACC 230 Analyzing Kodak Income Statement

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Accounting

Type

Essay

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Analyzing Kodak Income Statement
Analyzing Kodak Income Statement
ACC/230
In this check point I have analyzed the probability ratios of Eastman
Kodak Company. The gross profit margin for 2003 was 32.3 percent and
for 2004 it was 30.8 percent. This indicates a loss of 1.5 percent. I also
calculated the return on assets percentages. For 2003, the return on
assets was 4.6 percent and for 2004 the return on assets was 9.8
percent. This was an increase of 5.2 percent. This indicates the
company is generating more profits. The last of the profitability
percentages I calculated was return on equity. For the year 2003, 7.8
percent was the return on equity. For the year 2004, 14.6 percent was
the return on equity. On the consolidated statement of cash flows, the
net cash provided by operating activities was down 477 million from
2003 to 2004. The shareholders equity increased 566 million from 2003
to 2004. Cash dividends decreased to $.50 per share in 2004. The share

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was down from $1.15 in 2003. Retained earnings increased 407 million
from 2003 to 2004. It is my financial opinion the Eastman Kodak
Company is in a better profit gaining position than in the previous year.
The decrease in the stocks has me concerned for the financial stability of
the company.
I believe the company is on an upswing and I would recommend
investment in this company.

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References:
http://wps.prehall.com/bp_fraser_financial_8

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