Address the following questions in the comments section of Income Statement:

• • Identify which accounts had a large magnitude of change of 10% or more.
  • Identify which accounts changed for the period and explain how this affected the financial analysis calculation.
  • Explain why the account changed during the period, what business decisions may have caused the change, and how these changes impacted company performance.

E F G H 1 2 Horizontal Analysis 3 Year 2020 Year 2019 Year 2022 Year 2021 Year 2020 K L M N Comments Income Statement P R Company Vertical Analysis Year 2022 Year 2021 Year 2020 Year 2022 Year 2021 Year 2020 4 5 6 93,561.0 78,112.0 39.7% 35.7% 19.8% Revenue Total Revenue / Total Sales 109,120.0 106,005.0 93,561.0 100.0% 100.0% 100.0% 7 66,177.0 54,864.0 49.9% 36.6% 20.6% 8 27,384.0 23,248.0 15.7% 33.5% 17.8% Cost of Revenue/Cost of Goods Sold Gross Profit 82.229.0 74,963.0 66,177.0 75.4% 70.7% 70.7% 26,891.0 31,042.0 27,384.0 24.6% 29.3% 29.3% 9 18,615.0 16,233.0 27.3% 21.7% 14.7% 10 11 2,230.0 2,357.0 1.2% -0.6% -5.4% Selling, General, and Administrative Expenses Research & Development Expenses Depreciation and Amortization Expenses 20,658.0 19,752.0 18,615.0 18.9% 18.6% 19.9% 12 Other Operating Expense (Income) 0.0 2,385.0 0.0 0.0 0.0 0.0% 0.0% 0.0% 2,344.0 0.0 2,230.0 2.2% 2.2% 2.4% 0.0 0.0% 0.0% 0.0% 13 20,845.0 18,590.0 24.0% 18.9% 12.1% 14 6,539.0 4,658.0 -17.4% 92.1% 40.4% 15 -977.0 -477.0 0.2% -11.7% 104.8% Total Operating Expenses Operating Income or Loss Interest Expense (Income) 23,043.0 22,096.0 20,845.0 21.1% 20.8% 22.3% 3,848.0 8,946.0 6,539.0 3.5% 8.4% 7.0% -478.0 -421.0 -977.0 -0.4% -0.4% -1.0% 16 Restructuring Expenses 0.0 0.0 0.0 0.0% 0.0% 0.0% 17 Acquisition-Related Expenses 0.0 0.0 0.0 0.0% 0.0% 0.0% 18 -16.0 9.0 433.3% 4144.4% -277.8% Other Losses/Impairments (Gains) 48.0 382.0 -16.0 0.0% 0.4% 0.0% 19 5,546.0 20 -1,178.0 4,190.0 -921.0 -18.4% 112.6% 32.4% Earnings Before Taxes 3,418.0 8,907.0 5,546.0 3.1% 8.4% 5.9% -30.7% 112.9% 27.9% Income Tax Expense -638.0 -1,961.0 -1,178.0 -0.6% -1.8% -1.3% 21 4,368.0 3,269.0 -15.0% 112.5% 33.6% Net Income From Continuing Ops 2,780.0 6,946.0 4,368.0 2.5% 6.6% 4.7% 22 12.0 -100.0% After-Tax Adjustments 0.0 23 4,368.0 3,281.0 -15.3% 111.7% 33.1% Net Income 2,780.0 0.0 6,946.0 0.0 0.0% 0.0% 0.0% 4,368.0 2.5% 6.6% 4.7% 24 25 26 Basic Weighted Average Shares Outstanding Diluted Weighted Average Shares Outstanding 27 28 8.72 6.42 -6.2% 121.7% 35.8% Basic EPS 29 8.64 6.36 -6.0% 121.7% 35.8% Diluted EPS 6.02 14.23 8.72 5.98 14.10 8.64 100.0% 99.3% 100.00% 100.00% 99.09% 99.08% 30 31 32 EBIT EBITDA Comments