OMM 622 OMM622 Week 3 DQ 2 Analyzing an Income Statement (Ashford)
OMM 622 Week 3 Discussion 2 Analyzing an Income Statement
Analyzing an Income Statement. 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. Create a common-sized income statement for the three years. What conclusions can you draw from the different parts of the statement? What are the causes and effects of Elf's performance for those three years?
Elf Corporation Income Statements for the Years Ending December 31
(in millions) 2010 Sales $700
Cost of goods sold 350
Gross profit 350
Advertising and marketing 50 75 75
2009 2008 $650 $550 325 275 325 275
Operating profit Interest expense Earnings before tax Tax expense (50%) Net income
Respond to at least two of your classmates’ posts.
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