The telecommunications industry suffered a severe business downturn during the early part of this decade. Lucent Technologies
Question:
1. Prepare a horizontal analysis income statement for Lucent Technologies.
2. Interpret youranalysis.
Transcribed Image Text:
Lucent Technologies Inc. Consolidated Statements of Income For the Years Ended September 30, 2004 and 2003 In millions Revenues Costs of revenues Gross profit Operating expenses 2004 9,045 5,266 $ 3,779 2003 8,470 5,818 5 2,652 Selling, general, and administrative Research and developme 1,296 1270 2,566 1,213 246 1,509 1.488 Total operating expenses Operating income (loss) 2,997 (345) (305) (353) Other income (expense)-net Interest expense (396) Income (loss) from continuing operations before 1,063 939 2,002 (1,003) 233 S (770) income tax (exe) benefit Income tax (expense) benefit Income (loss) from continuing operations
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Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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