What Does Big Blue Do? Gain access to the consolidated financial statements of IBM. These may be obtainedue from the company, through many libraries, or from the Inter-

net or other electronic databases. Focus on IBM’s income statement.

W.Wi ey-com/college/king What does IBM call its income statement?

What are the primary lines of business from which IBM earns revenues?

. Which line of business generated the most revenue in the latest year reported? In the year before?

Which line of business generated the greatest gross profit in the latest year reported? In the year before?

Do any lines of business seem to be showing exceptional strength in growth?

Do any lines of business seem to be declining?

Does the income statement provide any indication that IBM has been successful in controlling its costs? Explain.