Acc/230 Analyzing Income Statement

Analyzing Income Statement Checkpoint: After analyzing Eastman Kodaks (Kodak) income statement, there are some points an psychopsychoanalyst would look at when assessing the profitability of Eastman Kodak. Looking at Kodaks sales figures shows that the sales levels have grown each year since 2002. Unfortunately, this is not a great indicator of the federations profitability because of the enlarge in the operational comprise between 2002 and 2003. Kodaks run be increased 15.3 helping 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 flange shows that the gross profit margin has declined every year. thither was a large decrease in total assets between 2003 and 2004. there was also a decrease in short-term and spacious liabilities. Common stock and additional paid in secure staid the same, but there was an increase in maintained earnings. Shareholders equity saw a substantial increase speckle 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 humour since there was a higher(prenominal) increase in accounts due 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 participation substantially decreases between 2003 and 2004. This willing cause some concern, and analyst would look this over to limit a reason for the decrease.If you ind! ispensability to get a safe essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper