Analyzing an Income Statement

nygungwnm
timer Asked: Nov 9th, 2013

Question Description

Income statements are presented in the table below for the Elf Corporation for the years ending December 31, 2010, 2009, and 2008. Write a one-paragraph analysis of Elf Corporation’s profit performance for the period.  The focus of the analysis involves creating a common sized Income Statement for the three years and relating the parts of the statement to draw conclusions, ultimately to find the causes and effects of Elf's performance for those three years.  Respond to at least two of your fellow students' postings. 

     
Elf Corporation Income Statements for the Years Ending December 31

(in millions)

2010

2009

2008

Sales

$700

$650

$550

Cost of goods sold

 350

 325

 275

Gross profit

350

325

275

Operating Expenses:

 

 

 

Administrative

100

100

100

Advertising and marketing

    50

    75

    75

Operating profit

$200

$150

$100

Interest expense

    70

    50

   30

Earnings before tax

$130

$100

$ 70

Tax expense (50%)

     65

    50

     35

Net income

  65

$   50

  35


User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors