VERDescribe the trend of revenues from 2007 to 2010. What observations can be drawn?Describe the trend of operating income from 2007 to 2010. What observations can be drawn?Describe the trend of net income from 2007 to 2010. What observations can be drawn? GMA NETWORK INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEcurrency in philippine pesos, in millions2010200920082007Revenues100.0%100.0%100.0%100.0%Cost of Goods Sold40.7%39.3%40.3%40.3%GROSS PROFIT (Gross Income/Net Revenues)59.3%60.7%59.7%59.7%Selling General & Admin Expenses, Total24.7%23.5%22.5%22.5%Depreciation & Amortization, Total2.6%3.2%3.6%3.3%Other Operating Expenses1.4%1.5%1.4%1.3%OTHER OPERATING EXPENSES, TOTAL28.7%28.2%27.5%27.1%INCOME FROM OPERATIONS (Operating Income)30.5%32.5%32.2%32.5%Interest Expense0.0%-0.1%-0.1%-0.2%Interest and Investment Income0.6%0.5%0.7%0.7%Income (Loss) on Equity Investments0.1%-0.1%-0.1%0.0%Currency Exchange Gains (Loss)-0.2%-0.1%0.0%-0.2%Other Non-Operating Income (Expenses)0.2%0.2%0.4%0.9%Gain (Loss) on Sale of Assets0.1%0.1%0.3%0.0%Other Unusual Items, Total0.0%0.0%0.0%0.2%NET INCOME BEFORE TAX31.2%33.1%33.4%33.9%Income Tax Expense8.0%8.8%10.9%11.2%NET INCOME23.2%24.3%22.5%22.6%

The Statement of Comprehensive Income - The statement of comprehensive income is the profit earned…

GMA NETWORK INC. CONSOLIDATED STATEMENTS OF COMPREHEN SIVE INCOME currency in philippine pesos, in millions 2010 2009 2008 2007 Revenues 100.0% 100.0% 100.0% 100.0% Cost of Goods Sold 40.7% 39.3% 40.3% 40.3% GROSS PROFIT (Gross Income/Net Revenues) 59.3% 60.7% 59.7% 59.7% Selling General & Admin Expenses, Total Depreciation & Amortization, Total Other Operating Expenses OTHER OPERATING EXPENSES, TOTAL 24.7% 23.5% 22.5% 22.5% 2.6% 3.2% 3.6% 3.3% 1.4% 1.5% 1.4% 1.3% 28.7% 28.2% 27.5% 27.1% INCOME FROM OPERATIONS (Operating Income) 30.5% 32.5% 32.2% 32.5% Interest Expense 0.0% -0.1% -0.1% -0.2% 0.7% -0.1% Interest and Investment Income 0.6% 0.5% 0.7% Income (Loss) on Equity Investments 0.1% -0.1% 0.0% Currency Exchange Gains (Loss) Other Non-Operating Income (Expenses) -0.2% -0.1% 0.0% -0.2% 0.2% 0.2% 0.4% 0.9% Gain (Loss) on Sale of Assets 0.1% 0.1% 0.3% 0.0% Other Unusual Items, Total NET INCOME BEFORE TAX 0.0% 0.0% 0.0% 0.2% 31.2% 33.1% 33.4% 33.9% Income Tax Expense 8.0% 8.8% 10.9% 11.2% NET INCOME 23.2% 24.3% 22.5% 22.6%

GMA NETWORK INC. CONSOLIDATED STATEMENTS OF COMPREHEN SIVE INCOME currency in philippine pesos, in millions 2010 2009 2008 2007 Revenues 100.0% 100.0% 100.0% 100.0% Cost of Goods Sold 40.7% 39.3% 40.3% 40.3% GROSS PROFIT (Gross Income/Net Revenues) 59.3% 60.7% 59.7% 59.7% Selling General & Admin Expenses, Total Depreciation & Amortization, Total Other Operating Expenses OTHER OPERATING EXPENSES, TOTAL 24.7% 23.5% 22.5% 22.5% 2.6% 3.2% 3.6% 3.3% 1.4% 1.5% 1.4% 1.3% 28.7% 28.2% 27.5% 27.1% INCOME FROM OPERATIONS (Operating Income) 30.5% 32.5% 32.2% 32.5% Interest Expense 0.0% -0.1% -0.1% -0.2% 0.7% -0.1% Interest and Investment Income 0.6% 0.5% 0.7% Income (Loss) on Equity Investments 0.1% -0.1% 0.0% Currency Exchange Gains (Loss) Other Non-Operating Income (Expenses) -0.2% -0.1% 0.0% -0.2% 0.2% 0.2% 0.4% 0.9% Gain (Loss) on Sale of Assets 0.1% 0.1% 0.3% 0.0% Other Unusual Items, Total NET INCOME BEFORE TAX 0.0% 0.0% 0.0% 0.2% 31.2% 33.1% 33.4% 33.9% Income Tax Expense 8.0% 8.8% 10.9% 11.2% NET INCOME 23.2% 24.3% 22.5% 22.6%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Match the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects Times interest earned
Question: Which financial ratio measures the proportion of net income generated per dollar of revenue? A) Return on Investment ( ROI) B) Operating Profit Margin C) Return on Sales (ROS) D) Earnings per Share (EPS)
When should an average amount be used for the numerator or denominator? When the denominator is a balance sheet item or items. When a ratio consists of an income statement item and a balance sheet item. When the numerator is a balance sheet item or items. When the numerator is an income statement item or items.
Explain the meaning of the Accounting Period Assumption. Why the Accounting Period Assumption is important when analysing ratios.
explain the impact on financial statement using FIFO, weighted avverage and LIFO. When would the three methods give similar profit figures? when would they give indentical profit figure?
Long-term solvency is indicated by a. Current ratio b. Debt/equity ratio c. Operating ratio d. Net profit ratio
Using the information from 27A prepare the following ratios: gross profit margin profit margin return on assets earnings per share current ratio acid test ratio debt ratio Indicate what each is used for (ie: measuring efficiency, solvency etc)
which of the following comes first in the income statement O a. finance cost O b. gross profit O C. C. cost of sales O d. distribution cost
when putting together an income statement do the revenues and expenses have to put in order from highter amount to lowest?