"Understand and interpret amounts reported on the income statement.

Alternate View

(in millions of $ or )

CORP A

CORP B

CORP C

04/30/2011

12/31/2011

12/31/2011

Amount

CS%

Amount

CS%

Amount

CS%

Sales revenue

6,998.6

100.0%

53,999

100.0%

39,046

100.0%

Cost of goods sold (COGS)

5,205.7

-74.4%

20,242

-37.5%

16,634

-42.6%

Gross profit

%

%

%

SGA expense

1,629.4

-23.3%

7,670

-14.2%

10,499

-26.9%

R&D

0.0

0.0%

8,350

-15.5%

0

0.0%

Depreciation/amortization

228.7

-3.3%

260

-0.5%

0

0.0%

Other operating expenses

0.5

-0.0%

132

-0.2%

0

0.0%

Interest expense (income)

57.4

-0.8%

(192)

+0.4%

469

-1.2%

Investment expense (income)

0.0

0.0%

(112)

+0.2%

0

0.0%

Other expenses (revenues)

0.0

0.0%

(135)

+0.2%

1,619

-4.2%

Provision for income tax

(48.5)

+0.7%

4,839

-9.0%

1,856

-4.8%

Minority interest

0.0

0.0%

0

0%

2,104

-5.4%

Net income

$/

%

$/

%

$/

%

Q1 Compute gross profit, gross profit margin, net income, and the return on sales ratio for each corporation. Record the amounts in the appropriate space above.

Q2 Analyze the financial attributes of the three corporations by circling the corporation with...

the lowest GP% CORP (A / B / C)

significant R&D expense CORP (A / B / C)

significant interest expense CORP (A / B / C)

the lowest ROS CORP (A / B / C)

Q3 Use the descriptions below to identify each corporation using their financial information. ANHEUSER-BUSCH INBEV (BUD) is a publicly-traded company based in Leuven, Belgium. It is the leading global brewer and one of the world's top five consumer products companies. A true consumer-centric, sales-driven company, Anheuser-Busch InBev manages a portfolio of nearly 300 brands that includes global flagship brands Budweiser, Stella Artois, and Beck's. Anheuser-Busch InBev's dedication to heritage and quality is rooted in brewing traditions that originate from the Den Hoorn brewery in Leuven, Belgium, dating back to 1366 and the pioneering spirit of the Anheuser & Co. brewery, established in 1860 in St. Louis, USA. Anheuser-Busch InBev has significant debt financing.

Anheuser-Busch InBev must be Corporation (A / B / C) Why?

INTEL CORPORATION (INTC) is the largest producer of semiconductors in the world, currently possessing 80% of the market share. Intel's most notable products include its Pentium and Celeron microprocessors. Intel also makes flash memories and is #1 globally in this market. Dell is the company's largest customer.

Intel must be Corporation (A / B / C). Why?

BARNES & NOBLE (BKS) operates in the highly competitive retail industry of selling books, magazines, newspapers, and other content through its multi-channel distribution platform.

Barnes & Noble must be Corporation (A / B / C). Why?"