Select a publicly traded company for analysis or use a company assigned by your instructor. Using the firm’s most recent Form 10-K report (accessed through the SEC EDGAR database or from the company’s website), complete the following requirements.

(a) Using the consolidated statements of operations, analyze the profitability of the company by preparing a common-size income statement for the past three years. In addition, calculate sales growth and operating expense growth for each two-year period presented, as well as effective tax rates for all three years.

(b) Using the consolidated statements of stockholders’ equity for the company, explain the key reasons for the changes in the common stock, accumulated other comprehensive income, and retained earnings accounts. Evaluate these changes.