1. Based on this income statement, is this company doing better or worse than last year? Explain your answer based on the Dollar & % Change.

Based on this BALANCE SHEET, is this company doing better or worse than last year? Explain your answer based on the Common Size Analysis.

I'm struggling in accounting

INCOME STATEMENT 2018. 1 2 4 Southwest Airlines 5 6 2019 2018 $ Change % Change 7 Total Revenue $ 22,428 $ 21,965 $ 463 2.1% 8 Operating Expenses $ 19,471 $ 18,759 $ 712 3.8% 9 Operating Income or Loss $ 2,957 $ 3,206 $ (249) -7.8% 10 Interest Expense $ 118 $ 131 $ (13) -9.9% 11 Capitalized Interest $ (36) $ (38) $ 2 -5.3% 12 Interest Income $ (90) $ (69) $ (21) 30.4% 13 Other (gains) losses, net $ 8 $ 18 $ (10) -55.6% 14 Net Income from Continuing Operations $ $ 42 S (42) -100.0% 15 Non-recurring Events $ 657 $ 699 $ -6.0% 16 Net Income $ 2,300 $ 2,465 $ (165) -6.7% 17 *all numbers in thousands. 18 19 http://www.southwestairlinesinvestorrelations.com/financials/company-reports/annual-reports 20 (42) 21 22 23 24 BALANCE SHEET 6 7 Cash and Cash Equivalents 8 ST Investments 9 Accounts and Other Receivables 10 Inventory 11 Prepaid Expenses 12 Total Current Assets 13 Flight Equipment 14 Ground Property & Equipment 15 Deposits on Flight Equipment 16 Assets constructed for others 17 Less Allowance for Depreciation 18 Goodwill 19 Other Assets 20 Total Assets 21 Total Current Liabilities 22 Long Term Debt 23 Other Liabilities 24 Deferred Long Term Liability Charges 25 Minority Interest 26 Negative Goodwill 27 Total Liabilities 28 Total Stockholders Equity 29 *all numbers in thousands 30 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2019 2,548 $ 1,524 $ 1,086 $ 529 $ 287 $ 5,974 $ 21,629 $ 5,672 $ 248 $ 164 $ 10,688 $ 970 $ 1,926 $ 25,895 $ 8,952 $ 1,846 $ 1,684 $ 2,364 $ 1,053 $ 164 $ 16,063 $ 9,832 $ 2018 1,854 1,835 568 461 310 5,028 21,753 4,960 775 1,768 9,731 970 720 26,243 7,905 2,771 Common Size % 2019 9.84% 5.89% 4.19% 2.04% 1.11% 23.07% 83.53% 21.90% 0.96% 0.63% 41.27% 3.75% 7.44% 100.00% 34.57% 20.62% 91.22% 140.38% 44.54% 15.57% 62.03% 37.97% Common Size % 2018 7.06% 6.99% 2.16% 1.76% 1.18% 19.16% 82.89% 18.90% 2.95% 6.74% 37.08% 3.70% 2.74% 100.00% 30.12% 10.56% 2.48% 9.25% 3.57% 6.48% 62.45% 37.55% 650 2,427 936 1,701 16,390 9,853