Refer to the income statement for Circuit City in any 10 Appendix A. How does Circuit City title its net sales revenue account?

Appendix A:

Transcribed Image Text:

Consolidated Statements of Earnings $ in millions, except per share amounts For the Fiscal Years Ended February 26, February 28, March 1, 2005 2004 2003 Revenue $27,433 $24,548 $20,943 Cost of goods sold 20,938 18,677 15,998 Gross profit 6,495 5,871 4,945 Selling, general and administrative expenses 5,053 4,567 3,935 Operating income 1,442 1,304 1,010 Net interest income (expense) Earings from continuing operations before income tax expense Income tax expense Earnings from continuing operations Loss from discontinued operations (Note 2), net of $17 and $119 tax Gain (loss) on disposal of discontinued operations (Note 2) Cumulative effect of change in accounting principle for goodwill (Note 1), net of $24 tax Cumulative effect of change in accounting principle for vendor allowances (Note 1), net of $26 tax Net earnings Basic earnings (loss) per share: Continuing operations 1 (8) 4 1,443 1,296 1,014 509 496 392 934 800 622 - (29) (441) 50 (66) - (40) (42) $ 9841 $ 705 $ 99 Discontinued operations Gain (loss) an disposal of discontinued operations Cumulative effect of accounting changes Basic eamings per share Diluted earnings (loss) per share:!!! Continuing operations Discontinued operations Gain (loss) on disposal of discontinued operations Cumulative effect of accounting changes Diluted earnings per share $ 2.87 $ 2.47 $ 1.93 - 0.15 (0.09) (0.20) (1.37) (0.25) $ 3.02 $ 2.18 $ 0.31 $ 2.79 0.15 $ 2.41 (0.09) (0.20) $ 1.90 (1.34) (0.25) $ 2.94 $ 2.13 $ 0.31 325.9 321.1 Basic weighted average common shares outstanding (in millions) Diluted weighted average common shares outstanding (in millions) 336.6 323.3 333.9 330.7 The calculation of diluted earnings per share assumes the conversion of our convertible debentures due in 2022 into 5.8 million shares of common stock and adds back related after-tax interest expense of $6.5 for all periods presented.