Acc/230 Analyzing Income Statement

Analyzing Income Statement Checkpoint: After analyzing Eastman Kodaks (Kodak) income statement, in that location are almost points an analyst would look at when assessing the profitability of Eastman Kodak. Looking at Kodaks gross sales figures shows that the sales levels have grown to each one year since 2002. Unfortunately, this is not a great indicator of the federations profitability because of the change magnitude in the operational be between 2002 and 2003. Kodaks direct(a) be change magnituded 15.3 percentage from 2002 to 2003. This is a rather handsome increase in operating be. At the same time, their sales only increased by 2.9 percent. Looking at Kodaks gross profit flange shows that the gross profit security deposit has declined every year. thither was a large fall in total assets between 2003 and 2004. at that place was also a decrease in short-term and languish liabilities. Common stock and additive paid in secure staid the same, but there was an increase in retained earnings. Shareholders equity saw a substantial increase fleck of ground liabilities decreased.

This makes the total assets and liabilities relief out for the Eastman Kodak Company for 2004. An analyst great power bump some cause for rawness since there was a extravagantly increase in accounts due and current liabilities. rack up current assets are high gear enough to cover the costs of the increased liabilities, but the increase in liabilities is cause for foreboding by itself. The net income of the company substantially decreases between 2003 and 2004. This unstrained cause some concern, and analyst would look this over to ascertain a reason for the decrease.If you loss to get a caoutchouc essay, order it on our website: Ordercustompaper.com

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