Resource: Ch. 3 of Understanding Financial Statements

Complete Problem 3.16b on p. 111 (Ch. 3).

Analyze the income statement of Eastman Kodak, located at

http://www.kodak.com/US/en/corp/annualReport04/cover.shtml.

Write a 200- to 300-word response to the problem. In addition, include your analysis of indicators such as earnings per share, operating income, and comprehensive income.

3.16. Eastman Kodak Comprehensive Analysis Problem Using the Financial Statement

Analysis Template

Each chapter in the textbook contains a continuation of this problem. The objective is to

learn how to do a comprehensive financial statement analysis in steps as the content of

each chapter is learned. Using the 2004 Eastman Kodak Annual Report or Form 10-K,

which can be found at www.prenhall.com/fraser, complete the following requirements:

(a) Open the financial statement analysis template that you saved from the Chapter 1

Eastman Kodak problem and input the data from the Eastman Kodak income statement.

Use the basic earnings per share from continuing operations when inputting

the earnings per share amount. When you have finished inputting the data, review

the income statement to make sure there are no red blocks indicating that your

numbers do not match the cover sheet information you input from the Chapter 1

problem. Make any necessary corrections before printing out both your input and

the common-size income statement that the template automatically creates for you.

(b) Analyze the income statement of Eastman Kodak. Write a summary that includes

important points that an analyst would use in assessing the profitability of Eastman

Kodak.