Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Suppose the following historical data is from the consolidated income statements filed by a media corporation.
*chart attached*
A): Prepare a horizontal analysis of the net income comparing 2012 and 2013. (Round percentages to one decimal place.)
(how to answer chart is attached)
Transcribed Image Text:Consolidated Statement of Income
Year ended December 31
2013
2012
2011
(in millions, except per share data)
Revenue
$64,655
$62,571
$55,842
Costs and Expenses:
Programming and production
Other operating and administrative
Advertising, marketing and promotion
19,668
19,930
16,596
18,582
17,834
16,646
4,967
4,832
4,243
Depreciation
6,252
6,151
6,040
Amortization
1,615
1,649
1,596
51,084
50,396
45,121
Operating Income
13,571
12,175
10,721
Other Income (Expense):
Interest expense
(2,576)
(2,520)
(2,505)
Investment income (loss), net
574
220
159
Equity in net income (losses) of investees, net
(88)
(366)
(35)
(133)
(2,514)
960
Other income (expense), net
774
(2,456)
(566)
Income before income taxes
11,115
11,609
8,207
Income tax expense
(3,982)
(3,743)
(3,050)
Net income
7,133
7,866
5,157
Net (income) loss attributable to noncontrolling
interests and
redeemable subsidiary preferred stock
(321)
(1,661)
(997)
Net Income Attributable to Corporation
$6,812
$6,205
$4,160
Basic earnings per common share attributable to Corporation
Corporation shareholders
$2.60
$2.32
$1.51
Diluted earnings per common share attributable to Corporation
Corporation shareholders
$2.56
$2.28
$1.50
Dividends declared per common share
$0.78
$0.65
$0.45
Transcribed Image Text:(a) Prepare a horizantal analysis of the net income comparing 2012 and 2013. (Round percentages to one decimal place.)
Consolidated Statement of Income
Increase (Decrease)
Year ended December 31
2013
2012
Amount
Percent
(in millions)
Revenue
Costs and Expenses:
Programming and Production
Other operating and administrative
Advertising, Marketing, and Promotion
Depreciation
Amortization
Operating Income
Other Income (Expense):
Interest Expense
Investment Income (Loss), Net
Equity in Net Income (Losses) of Investees, Net
Other Income (Expense), Net
Income before Income Taxes
Income Tax Expense
Net Income
Net (Income) Loss Attributable to Noncontrolling Interests
and Redeemable Subsidiary Preferred Stock
Net Income Attributable to Corporation
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