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TABLE 4-7| Moderately Large Corporation Consolidated Statement of Earnings Consolidated Statement of Earnings (in thousands, except earning per share) Fiscal Year Ended: Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Net revenues Cash Sales Credit Sales Total Net Revenues $2,888 6,046 8,935 $2,751 5,258 8,009 $2,456 4,572 7,028 Cost of Sales Gross Profit 5,361 3,574 4,405 3,604 3,725 3,303 Salaries Insurance Depreciation General and administrative expenses Subtotal operating expenses Operating income Interest expense 1,258 155 150 489 2,052 1,522 10 1,183 116 135 479 1,913 1,691 11 1,112 93 122 361 1,687 1,616 11 Earnings before income taxes Income taxes 1,512 529 1,680 588 1,605 562 $ 983 Net Earnings Per Common Share Net Earnings Basic Net Earnings Diluted $1,092 $1,043 $ 0.28 $ 0.25 $ 0.31 $ 0.27 $ 0.30 $ 0.26 Weighted average shares outstanding: Basic Diluted 3,500 4,000 3,500 4,000 3,500 4,000

TABLE 4-7| Moderately Large Corporation Consolidated Statement of Earnings Consolidated Statement of Earnings (in thousands, except earning per share) Fiscal Year Ended: Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Net revenues Cash Sales Credit Sales Total Net Revenues $2,888 6,046 8,935 $2,751 5,258 8,009 $2,456 4,572 7,028 Cost of Sales Gross Profit 5,361 3,574 4,405 3,604 3,725 3,303 Salaries Insurance Depreciation General and administrative expenses Subtotal operating expenses Operating income Interest expense 1,258 155 150 489 2,052 1,522 10 1,183 116 135 479 1,913 1,691 11 1,112 93 122 361 1,687 1,616 11 Earnings before income taxes Income taxes 1,512 529 1,680 588 1,605 562 $ 983 Net Earnings Per Common Share Net Earnings Basic Net Earnings Diluted $1,092 $1,043 $ 0.28 $ 0.25 $ 0.31 $ 0.27 $ 0.30 $ 0.26 Weighted average shares outstanding: Basic Diluted 3,500 4,000 3,500 4,000 3,500 4,000

Essentials Of Investments
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
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Perform a horizontal analysis for the MLC income statement (Table 4–7)
for 2011 and 2012. Write an explanation of this analysis.

TABLE 4-7| Moderately Large Corporation Consolidated Statement of Earnings Consolidated Statement of Earnings (in thousands, except earning per share) Fiscal Year Ended: Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Net revenues Cash Sales Credit Sales Total Net Revenues $2,888 6,046 8,935 $2,751 5,258 8,009 $2,456 4,572 7,028 Cost of Sales Gross Profit 5,361 3,574 4,405 3,604 3,725 3,303 Salaries Insurance Depreciation General and administrative expenses Subtotal operating expenses Operating income Interest expense 1,258 155 150 489 2,052 1,522 10 1,183 116 135 479 1,913 1,691 11 1,112 93 122 361 1,687 1,616 11 Earnings before income taxes Income taxes 1,512 529 1,680 588 1,605 562 $ 983 Net Earnings Per Common Share Net Earnings Basic Net Earnings Diluted $1,092 $1,043 $ 0.28 $ 0.25 $ 0.31 $ 0.27 $ 0.30 $ 0.26 Weighted average shares outstanding: Basic Diluted 3,500 4,000 3,500 4,000 3,500 4,000
Transcribed Image Text:TABLE 4-7| Moderately Large Corporation Consolidated Statement of Earnings Consolidated Statement of Earnings (in thousands, except earning per share) Fiscal Year Ended: Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Net revenues Cash Sales Credit Sales Total Net Revenues $2,888 6,046 8,935 $2,751 5,258 8,009 $2,456 4,572 7,028 Cost of Sales Gross Profit 5,361 3,574 4,405 3,604 3,725 3,303 Salaries Insurance Depreciation General and administrative expenses Subtotal operating expenses Operating income Interest expense 1,258 155 150 489 2,052 1,522 10 1,183 116 135 479 1,913 1,691 11 1,112 93 122 361 1,687 1,616 11 Earnings before income taxes Income taxes 1,512 529 1,680 588 1,605 562 $ 983 Net Earnings Per Common Share Net Earnings Basic Net Earnings Diluted $1,092 $1,043 $ 0.28 $ 0.25 $ 0.31 $ 0.27 $ 0.30 $ 0.26 Weighted average shares outstanding: Basic Diluted 3,500 4,000 3,500 4,000 3,500 4,000
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