Income Statement use the income statement from the SEC Form 10-K for the most recent fiscal year.

1. State your companys fiscal year end date. If it is not December 31^st, why do you believe they chose to use the date they did?
2. State the method, single-step or multiple-step, used in the statement. If it is a hybrid, explain.
3. Calculate the gross profit ratio for each of the years reported. Briefly evaluate the trend of these results.
4. Explain whether operating income is increasing or decreasing for the years reporte Explain the difference between operating income and net income. (not in terms of dollars but in terms of meaning)
5. Describe the primary source of revenue for this company. What might that say about the ability of this company to do well in the future?
6. Explain what basic earnings per share is. Show the approximate computations that the company used to compute this amount.
7. Convert the income statement to a common sized income statement (in other words, restate everything as a percentage of total revenues. You will need to export the income statement to Excel for this). Based upon the common size income statement, is there anything surprising to you?

NVIDIA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) Year Ended January 26, January 27, January 28, 2020 2019 2018 Revenue $ 10,918 $ 11,716 $ 9,714 Cost of revenue 4,150 4,545 3,892 Gross profit 6,768 7,171 5,822 Operating expenses Research and development 2,829 2,376 1,797 Sales, general and administrative 1,093 991 815 Total operating expenses 3,922 3,367 2,612 Income from operations 2,846 3,804 3,210 Interest income 178 136 69 Interest expense (52) (58) (61) Other, net (2) 14 (22) Total other income (expense) 124 92 (14) Income before income tax 2,970 3,896 3,196 Income tax expense (benefit) 174 (245) 149 Net income $ 2,796 $ 4,141 $ 3,047 Net income per share: Basic Diluted 5.09 4.59 $ 4.52 $ 6.81 $ 6.63 $ $ 4.82 Weighted average shares used in per share computation: Basic 609 608 Diluted 618 625 See accompanying notes to the consolidated financial statements. 599 632 NVIDIA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) Year Ended January 26, January 27, January 28, 2020 2019 2018 Revenue $ 10,918 $ 11,716 $ 9,714 Cost of revenue 4,150 4,545 3,892 Gross profit 6,768 7,171 5,822 Operating expenses Research and development 2,829 2,376 1,797 Sales, general and administrative 1,093 991 815 Total operating expenses 3,922 3,367 2,612 Income from operations 2,846 3,804 3,210 Interest income 178 136 69 Interest expense (52) (58) (61) Other, net (2) 14 (22) Total other income (expense) 124 92 (14) Income before income tax 2,970 3,896 3,196 Income tax expense (benefit) 174 (245) 149 Net income $ 2,796 $ 4,141 $ 3,047 Net income per share: Basic Diluted 5.09 4.59 $ 4.52 $ 6.81 $ 6.63 $ $ 4.82 Weighted average shares used in per share computation: Basic 609 608 Diluted 618 625 See accompanying notes to the consolidated financial statements. 599 632