LensCo is a privately owned chain of eyewear stores offering a range of services to its customers, including eye exams by licensed optometrists and high-end eye glasses and sunglasses. In an effort to further expand its range of eyewear, LensCo acquired 100% of the shares of Solar Film Inc. (SFI) on January 1, 2021. SFI produces a brand of sunglasses that protect the eyes from sun damage.

You, CPA, are a senior financial analyst at LensCo, and the controller, Jing Lo, has asked for your help dealing with a few issues she has noted since the acquisition. Jing is concerned with the monthly internal reporting prepared by SFI. She was provided with a page filled with several colorful visualizations from Power BI. To save time, Jing has asked that you help her interpret the meaning of these images.

70,000 60,000 50,000 Income Statement by Line Item 40,000 30,000 20,000 10,000 Sales Cost of sales Gross profit (10,000) Selling, general & admin expenses Depreciation Interest Net income (20,000) 12-Month average January 2021