Acc/230 Analyzing Income Statement

Analyzing Income Statement Checkpoint: After analyzing Eastman Kodaks (Kodak) income statement, there are or so points an analyst would look at when assessing the profitability of Eastman Kodak. Looking at Kodaks sales figures shows that the sales levels have grown to each one year since 2002. Unfortunately, this is not a great indicator of the unions profitability because of the plus in the operational speak to between 2002 and 2003. Kodaks in operation(p) be increased 15.3 department from 2002 to 2003. This is a rather large increase in operating costs. At the same time, their sales only increased by 2.9 percent. Looking at Kodaks gross profit margin shows that the gross profit margin has declined every year. thither was a large decrease in total assets between 2003 and 2004. at that place was also a decrease in short-term and commodious liabilities. Common stock and additional paid in stop up staid the same, but there was an increase in carry earnings. Shareholders equity saw a substantial increase bandage of ground liabilities decreased.

This makes the total assets and liabilities balance out for the Eastman Kodak Company for 2004. An analyst great power see some cause for concern since there was a high increase in accounts collectible and current liabilities. rack up current assets are high enough to cover the costs of the increased liabilities, but the increase in liabilities is cause for concern by itself. The net income of the familiarity substantially decreases between 2003 and 2004. This willing cause some concern, and analyst would look this over to limi t a reason for the decrease.If you essentia! l to get a safe essay, order it on our website: OrderCustomPaper.com

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