SECTION 3: INCOME STATEMENT

This is for Walmart, years 2020, 2019, and 2018

1. Using elements listed on your companies income statement calculate the increase or decrease in dollars and percent between the years using the following format. (Year to Year Change Analysis)

Company #1

Account	Current Year	Prior Year	+/- $	%	Current Year	Prior Year #2	+/- $	%

2. Using elements listed on your companies income statement, prepare a common size income statement using the following format. (Vertical Analysis)

Company #1

Account	Current Year	%	Prior Year	%	Two Years Ago	%

3. Using elements listed on your companys income statement calculate the percent change amounts using two years prior as the base year (100%) using the following format. Your answers should all be in percentages. (Horizontal Analysis)

Company #1

Account	Current Year/Base	Prior Year/Base	Two years ago/ Base
			100%

4. In thoughtful, well-organized paragraphs comment on changes you see in the income statements for each company over the three-year period.

Among the items to consider:

a. What is the trend, in each company, in total revenues over the three years? Explain.

b. What is the trend, in each company, in gross profit over the three years? Explain.

c. What is the trend, in each company, in net income over the three years? Explain.

d. What is the trend in profit margin over the three years? Explain.

e. Comment on any significant changes in revenues or expenses, negative and positive changes for each company. Explain.