Income Statement Analysis This weeks DQ focuses on the Income Statement It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills Locate an actual Income Statement from the latest fiscal year for one of the following companies Sears Tesla Pick an Income Statement Line Item or Ratio from the list below Line Item Ratio Revenue (aka Sales, Turnover) Cost of Goods Sold Cost of Sales Salary Expense Selling, General and Administrative Expense Gross Profit Operating Profit Net Profit Gross Margin ( ) Net Margin ( ) Salary Expense as of Sales Return on Sales Return on Equity Return on Assets Earnings Per Share (EPS) EBITDA What does this line item or ratio measure and why is it important item for Management to understand this number Identify the past 4 years of amounts for your line item or ratio (Note this will require you to track down additional historical Income Statements to get the older data) Share this data with the class using a data table or chart Answer the following questions What is the trend for this line item or ratio Has the line item or ratio amount increased or decreased Is this a good thing or a bad thing For this company What might management do to improve this line item or ratio Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone Reply Income Statement Analysis This weeks DQ focuses on the Income Statement It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills Locate an actual Income Statement from the latest fiscal year for one of the following companies Sears Tesla Pick an Income Statement Line Item or Ratio from the list below Line Item Ratio Revenue (aka Sales, Turnover) Cost of Goods Sold Cost of Sales Salary Expense Selling, General and Administrative Expense Gross Profit Operating Profit Net Profit Gross Margin ( ) Net Margin ( ) Salary Expense as of Sales Return on Sales Return on Equity Return on Assets Earnings Per Share (EPS) EBITDA What does this line item or ratio measure and why is it important item for Management to understand this number Identify the past 4 years of amounts for your line item or ratio (Note this will require you to track down additional historical Income Statements to get the older data) Share this data with the class using a data table or chart Answer the following questions What is the trend for this line item or ratio Has the line item or ratio amount increased or decreased Is this a good thing or a bad thing For this company What might management do to improve this line item or ratio Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone Reply Income Statement Analysis This weeks DQ focuses on the Income Statement It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills Locate an actual Income Statement from the latest fiscal year for one of the following companies Sears Tesla Pick an Income Statement Line Item or Ratio from the list below Line Item Ratio Revenue (aka Sales, Turnover) Cost of Goods Sold Cost of Sales Salary Expense Selling, General and Administrative Expense Gross Profit Operating Profit Net Profit Gross Margin ( ) Net Margin ( ) Salary Expense as of Sales Return on Sales Return on Equity Return on Assets Earnings Per Share (EPS) EBITDA What does this line item or ratio measure and why is it important item for Management to understand this number Identify the past 4 years of amounts for your line item or ratio (Note this will require you to track down additional historical Income Statements to get the older data) Share this data with the class using a data table or chart Answer the following questions What is the trend for this line item or ratio Has the line item or ratio amount increased or decreased Is this a good thing or a bad thing For this company What might management do to improve this line item or ratio Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone Reply Income Statement Analysis This weeks DQ focuses on the Income Statement It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills Locate an actual Income Statement from the latest fiscal year for one of the following companies Sears Tesla Pick an Income Statement Line Item or Ratio from the list below Line Item Ratio Revenue (aka Sales, Turnover) Cost of Goods Sold Cost of Sales Salary Expense Selling, General and Administrative Expense Gross Profit Operating Profit Net Profit Gross Margin ( ) Net Margin ( ) Salary Expense as of Sales Return on Sales Return on Equity Return on Assets Earnings Per Share (EPS) EBITDA What does this line item or ratio measure and why is it important item for Management to understand this number Identify the past 4 years of amounts for your line item or ratio (Note this will require you to track down additional historical Income Statements to get the older data) Share this data with the class using a data table or chart Answer the following questions What is the trend for this line item or ratio Has the line item or ratio amount increased or decreased Is this a good thing or a bad thing For this company What might management do to improve this line item or ratio Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone Reply

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 24, 2024

Income Statement Analysis This weeks DQ focuses on the Income Statement . It builds on the insights we gained in Week 2, but goes a

Income Statement Analysis

This weeks DQ focuses on the Income Statement. It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills.

Locate an actual Income Statement from the latest fiscal year for one of the following companies:
- Sears
- Tesla
Pick an Income Statement Line Item or Ratio from the list below:

Line Item

Ratio

Revenue (aka Sales, Turnover)
Cost of Goods Sold/Cost of Sales
Salary Expense
Selling, General and Administrative Expense
Gross Profit
Operating Profit
Net Profit

Gross Margin (%)
Net Margin (%)
Salary Expense as % of Sales
Return on Sales
Return on Equity
Return on Assets
Earnings Per Share (EPS)
EBITDA

What does this line item or ratio measure and why is it important item for Management to understand this number?
Identify the past 4 years of amounts for your line item or ratio (Note: this will require you to track down additional historical Income Statements to get the older data). Share this data with the class using a data table or chart.
Answer the following questions:
- What is the trend for this line item or ratio?
- Has the line item or ratio amount increased or decreased?
- Is this a good thing or a bad thing? For this company?
- What might management do to improve this line item or ratio?

Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone.

Income Statement Analysis

This weeks DQ focuses on the Income Statement. It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills.

Locate an actual Income Statement from the latest fiscal year for one of the following companies:
- Sears
- Tesla
Pick an Income Statement Line Item or Ratio from the list below:

Line Item

Ratio

Revenue (aka Sales, Turnover)
Cost of Goods Sold/Cost of Sales
Salary Expense
Selling, General and Administrative Expense
Gross Profit
Operating Profit
Net Profit

Gross Margin (%)
Net Margin (%)
Salary Expense as % of Sales
Return on Sales
Return on Equity
Return on Assets
Earnings Per Share (EPS)
EBITDA

What does this line item or ratio measure and why is it important item for Management to understand this number?
Identify the past 4 years of amounts for your line item or ratio (Note: this will require you to track down additional historical Income Statements to get the older data). Share this data with the class using a data table or chart.
Answer the following questions:
- What is the trend for this line item or ratio?
- Has the line item or ratio amount increased or decreased?
- Is this a good thing or a bad thing? For this company?
- What might management do to improve this line item or ratio?

Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone.

Income Statement Analysis

This weeks DQ focuses on the Income Statement. It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills.

Locate an actual Income Statement from the latest fiscal year for one of the following companies:
- Sears
- Tesla
Pick an Income Statement Line Item or Ratio from the list below:

Line Item

Ratio

Revenue (aka Sales, Turnover)
Cost of Goods Sold/Cost of Sales
Salary Expense
Selling, General and Administrative Expense
Gross Profit
Operating Profit
Net Profit

Gross Margin (%)
Net Margin (%)
Salary Expense as % of Sales
Return on Sales
Return on Equity
Return on Assets
Earnings Per Share (EPS)
EBITDA

What does this line item or ratio measure and why is it important item for Management to understand this number?
Identify the past 4 years of amounts for your line item or ratio (Note: this will require you to track down additional historical Income Statements to get the older data). Share this data with the class using a data table or chart.
Answer the following questions:
- What is the trend for this line item or ratio?
- Has the line item or ratio amount increased or decreased?
- Is this a good thing or a bad thing? For this company?
- What might management do to improve this line item or ratio?

Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone.

Income Statement Analysis

This weeks DQ focuses on the Income Statement. It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills.

Locate an actual Income Statement from the latest fiscal year for one of the following companies:
- Sears
- Tesla
Pick an Income Statement Line Item or Ratio from the list below:

Line Item

Ratio

Revenue (aka Sales, Turnover)
Cost of Goods Sold/Cost of Sales
Salary Expense
Selling, General and Administrative Expense
Gross Profit
Operating Profit
Net Profit

Gross Margin (%)
Net Margin (%)
Salary Expense as % of Sales
Return on Sales
Return on Equity
Return on Assets
Earnings Per Share (EPS)
EBITDA

What does this line item or ratio measure and why is it important item for Management to understand this number?
Identify the past 4 years of amounts for your line item or ratio (Note: this will require you to track down additional historical Income Statements to get the older data). Share this data with the class using a data table or chart.
Answer the following questions:
- What is the trend for this line item or ratio?
- Has the line item or ratio amount increased or decreased?
- Is this a good thing or a bad thing? For this company?
- What might management do to improve this line item or ratio?

Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone.