Financial Statements Income Statement (All numbers in thousands) Revenue 12 31 2015 12 31 2014 12 31 2013 Total Revenue 25,413,000 27,441,300 28,105,700 Cost of Revenue COGS 15,623,800 16,985,600 17,203,000 Gross Profit (GP GM) 9,789,200 10,455,700 10,902,700 Operating Expenses Selling and Administrative 2,643,700 2,506,500 2,138,400 Total Operating Expenses 2,643,700 2,506,500 2,138,400 Operating Income or Loss 7,145,500 7,949,200 8,764,300 Income from Continuing Operations Earnings Before Interest and Taxes 6,555,700 7,372,000 8,204,500 Interest Expense Income Before Tax 6,555,700 7,372,000 8,204,500 Income Tax Expense 2,026,400 2,614,200 2,618,600 Minority Interest Net Income From Continuing Ops 4,529,300 4,757,800 5,585,900 Non recurring Events Net Income 4,529,300 4,757,800 5,585,900 Competitor 5,529,800 5,353,000 4,200,000 Industry 5,529,800 5,303,000 5,100,000 Based on the Cost of Revenue (COGS), the firm is most likely (All three years) A Operates and owns restaurants (food business) B Sells jewelry C Auntie Annes D All of the Above Based on the revenue section of the Income Statement (2015 Total Revenue), A The firm is not doing as well as it was doing in 2013 B Sales are flat C Sales are increasing D Better than what it was doing in 2013 Based on the Income Statement (All three years), you can conclude that the firm in a service firm True False Based on the Income Statement (2013), you can conclude that the firm is not carrying much debt True False Based on the Income Statement (All years), you can conclude that the firms income tax expense stayed flat True False Based on the Income Statement (2015), you can conclude that a segment or certain product line in a company's business (including buildings, land, etc ) has been sold, disposed of or discontinued True False Based on the Income Statement (2015), you can conclude that the firm is not doing as well as the industry True False Based on the Income Statement (2015), you can conclude that the firm is doing better than its competition True False Based on the Income Statement (2015 Net Income), you can conclude that the firm is doing better than what it did in 2013 True B False Based on the Income Statement (All three years), would you invest in this firm Yes B No

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 29, 2024

Financial Statements Income Statement (All numbers in thousands)

Revenue	12/31/2015	12/31/2014	12/31/2013
Total Revenue	25,413,000	27,441,300	28,105,700
Cost of Revenue/COGS	15,623,800	16,985,600	17,203,000
Gross Profit (GP/GM)	9,789,200	10,455,700	10,902,700
Operating Expenses
Selling and Administrative	2,643,700	2,506,500	2,138,400
Total Operating Expenses	2,643,700	2,506,500	2,138,400
Operating Income or Loss	7,145,500	7,949,200	8,764,300
Income from Continuing Operations
Earnings Before Interest and Taxes	6,555,700	7,372,000	8,204,500
Interest Expense	-	-	-
Income Before Tax	6,555,700	7,372,000	8,204,500
Income Tax Expense	2,026,400	2,614,200	2,618,600
Minority Interest	-	-	-
Net Income From Continuing Ops	4,529,300	4,757,800	5,585,900
Non-recurring Events
Net Income	4,529,300	4,757,800	5,585,900

______________________________________________________________________________

*Competitor 5,529,800 5,353,000 4,200,000

*Industry 5,529,800 5,303,000 5,100,000

Based on the Cost of Revenue (COGS), the firm is most likely (All three years): A. Operates and owns restaurants (food business) B. Sells jewelry C. Auntie Annes D. All of the Above
Based on the revenue section of the Income Statement (2015 - Total Revenue), A. The firm is not doing as well as it was doing in 2013 B. Sales are flat C. Sales are increasing D. Better than what it was doing in 2013
Based on the Income Statement (All three years), you can conclude that the firm in a service firm.

Based on the Income Statement (2013), you can conclude that the firm is not carrying much debt.

Based on the Income Statement (All years), you can conclude that the firms income tax expense stayed flat.

Based on the Income Statement (2015), you can conclude that a segment or certain product line in a company's business (including buildings, land, etc.) has been sold, disposed of or discontinued.