Description
ncome 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 |
Explanation & Answer
Review
Review
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Similar Content
Related Tags
The Rhythm Section
by Mark Burnell
Ezperanza Rising
by Pam Muñoz Ryan
A Portrait of the Artist as a Young Man
by James Joyce
The Russian Hoax
by Gregg Jarrett
1984
by George Orwell
Breakfast at Tiffanys
by Truman Capote
Moby Dick
by Herman Melville
The Bell Jar
by Sylvia Plath
The Grapes of Wrath
by John Steinbeck