1. Describe the trend of revenues from 2007 to 2010. What observations can be drawn?2. Describe the trend of direct costs from 2007 to 2010. What observations can be drawn?3. Describe the trend of operating expenses from 2007 to 2010. What observations can be drawn?4. Describe the trend of operating income from 2007 to 2010. What observations can be drawn?5. Describe the trend of net income from 2007 to 2010. What observations can be drawn? ABS-CBN CORP.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEcurrency in philippine pesos, in millionsHorizontal Analysis% of change from 20072010200920082007Revenues60.99%27.79%13.87%0.00%Cost of Sales53.46%35.43%22.96%0.00%GROSS PROFIT (Gross Income/Net Revenues)70.23%18.42%2.73%0.00%Selling General & Admin Expenses, Total60.55%22.08%3.76%0.00%Depreciation & Amortization, Total26.70%20.69%34.08%0.00%Other Operating Expenses75.55%13.80%14.25%0.00%OTHER OPERATING EXPENSES, TOTAL57.64%21.63%7.26%0.00%INCOME FROM OPERATIONS (Operating Income98.53%11.19%-7.46%0.00%Interest Expense-100.28%-74.25%-37.26%0.00%Interest and Investment Income-4.65%-16.62%-19.48%0.00%Income (Loss) on Equity Investments-99.17%-119.17%-57.50%0.00%Currency Exchange Gains (Loss)Other Non-Operating Income (Expenses)Gain (Loss) on Sale of InvestmentsOther Unusual Items10.43%-55.01%-113.21%0.00%373.75%481.20%509.67%0.00%-5390100.00%-100.00%-100.00%0.00%-100.00%-100.00%63.20%0.00%INCOME BEFORE TAX92.49%8.25%7.29%0.00%Income Tax Expense12.29%-30.65%4.62%0.00%NET INCOME154.74%38.45%9.36%0.00%

. Describe the trend of revenues from 2007 to 2010. What observations can be drawn? 2. Describe the trend of direct costs from 2007 to 2010. What observations can be drawn? 3. Describe the trend of operating expenses from 2007 to 2010. What observations can be drawn? 4. Describe the trend of operating income from 2007 to 2010. What observations can be drawn? 5. Describe the trend of net income from 2007 to 2010. What observations can be drawn?

. Describe the trend of revenues from 2007 to 2010. What observations can be drawn? 2. Describe the trend of direct costs from 2007 to 2010. What observations can be drawn? 3. Describe the trend of operating expenses from 2007 to 2010. What observations can be drawn? 4. Describe the trend of operating income from 2007 to 2010. What observations can be drawn? 5. Describe the trend of net income from 2007 to 2010. What observations can be drawn?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.1E

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Question

1. Describe the trend of revenues from 2007 to 2010. What observations can be drawn?
2. Describe the trend of direct costs from 2007 to 2010. What observations can be drawn?
3. Describe the trend of operating expenses from 2007 to 2010. What observations can be drawn?
4. Describe the trend of operating income from 2007 to 2010. What observations can be drawn?
5. Describe the trend of net income from 2007 to 2010. What observations can be drawn?

ABS-CBN CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
currency in philippine pesos, in millions
Horizontal Analysis
% of change from 2007
2010
2009
2008
2007
Revenues
60.99%
27.79%
13.87%
0.00%
Cost of Sales
53.46%
35.43%
22.96%
0.00%
GROSS PROFIT (Gross Income/Net Revenues)
70.23%
18.42%
2.73%
0.00%
Selling General & Admin Expenses, Total
60.55%
22.08%
3.76%
0.00%
Depreciation & Amortization, Total
26.70%
20.69%
34.08%
0.00%
Other Operating Expenses
75.55%
13.80%
14.25%
0.00%
OTHER OPERATING EXPENSES, TOTAL
57.64%
21.63%
7.26%
0.00%
INCOME FROM OPERATIONS (Operating Income
98.53%
11.19%
-7.46%
0.00%
Interest Expense
-100.28%
-74.25%
-37.26%
0.00%
Interest and Investment Income
-4.65%
-16.62%
-19.48%
0.00%
Income (Loss) on Equity Investments
-99.17%
-119.17%
-57.50%
0.00%
Currency Exchange Gains (Loss)
Other Non-Operating Income (Expenses)
Gain (Loss) on Sale of Investments
Other Unusual Items
10.43%
-55.01%
-113.21%
0.00%
373.75%
481.20%
509.67%
0.00%
-5390100.00%
-100.00%
-100.00%
0.00%
-100.00%
-100.00%
63.20%
0.00%
INCOME BEFORE TAX
92.49%
8.25%
7.29%
0.00%
Income Tax Expense
12.29%
-30.65%
4.62%
0.00%
NET INCOME
154.74%
38.45%
9.36%
0.00%

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