Question

Instructions:: You need to show your clear calculation to support each statement provide a paragraph of interpretation related to the result of your analysis on each statement.

Question 1: Common size for income statement

Income Statement (Common Size) :

                                                                 Consolidated Income Statement

	2011	%	2010	%
Revenue	$19,176.1		$18,627.0
Cost of sales	( 10,571.7)		( 10,239.6 )
Gross Profit	8,604.4		8,387.4
Selling and administrative expenses	(   6,149.6)		( 5,953.7)
Restructuring charges	(      195.0)		0.0
Goodwill impairment	(      199.3)		0.0
Intangible and other asset impairment	(     202.0)		0.0
Other income (expenses)	88.5		( 7.9 )
Operating Income	$ 1,947.0		$ 2,425.8
Interest and other income	49.7		115.8
Interest expense	(      40.2)		( 38.7)
Income before income taxes	$ 1,956.5		$ 2,502.9
Provision for income taxes	(     469.8)		( 619.8)
Net Income	$ 1,486.7		$ 1,883.4

Answer 1