P10-4B. Perform horizontal and vertical analysis. (LO 2)
Here are the income statements from a firm’s recent annual report.
|
Year ended December 31 (in millions) |
|||
|
2008 |
2007 |
2006 |
|
|
Net revenue |
526,971 |
$25,112 |
$23,512 |
|
Cost of sales |
12,379 |
11,497 |
10,750 |
|
Selling general, and administrative |
|||
|
expenses |
9,460 |
8,958 |
8,574 |
|
Amortization of intangible assets |
145 |
138 |
165 |
|
Other expenses |
204 |
224 |
355 |
|
Operating profit |
4,783 |
4,295 |
3,667 |
|
Income from investments |
323 |
280 |
160 |
|
Interest expense |
(163) |
(178) |
(219) |
|
Interest income |
51 |
36 |
67 |
|
Income before income taxes |
4,994 |
4,433 |
3,675 |
|
Income taxes |
1,424 |
1,433 |
1,244 |
|
Net income |
$ g,szo |
$ 3,000 |
$ 2,431 |