Consolidated income statement s for Peach Computer appear below: Required: 1. Prepare common size income statements for

Consolidated income statements for Peach Computer appear below:

Consolidated income statements for Peach Computer appear below: " class="fr-fic fr-dii">

Required:
1. Prepare common size income statements for horizontal analysis.
2. Explain why net income decreased in 2008 and increased in2009.

Transcribed Image Text:

PEACH COMPUTER, INC. Consolidated Statements of Income (In thousands except per share amounts) Three fiscal years ended 2009 2008 2007 December 31 Sales Costs and expenses: $9,188,748 $7,976,954 $7,086,542 Cost of goods sold Research and development Selling, general, and administrative Restructuring costs and other $6,844,915 $5,248,834 $3,991337 602,135 1,687,262 564,303 1,384,111 (126,855) 666,474 664,564 1,632,362 320,856 $7,866,616 $6.280.734 $522,274 110,338 805,808 29,321 4.634 Operating income Interest and other income, net Income before income taxes Provision for income taxes Net income Earnings per common and common 49,634 $500,286 139,659 855442 325,069 $ 310,178 86,589 530,373 988 190,108 53,070 $2.61 $4.33 equivalent share shares used in the calculations of earnings per share Common and common equivalent 118,735 119,125 122,490