Acc/230 Analyzing Income Statement

Analyzing Income Statement Checkpoint: After analyzing Eastman Kodaks (Kodak) income statement, there are around points an psycho analyst would look at when assessing the profitability of Eastman Kodak. Looking at Kodaks sales figures shows that the sales levels have grown individually year since 2002. Unfortunately, this is not a great indicator of the alliances profitability because of the plus in the operational bell between 2002 and 2003. Kodaks in operation(p) be increased 15.3 representative 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 strand shows that the gross profit margin has declined every year. thither was a large decrease in total assets between 2003 and 2004. in that respect was also a decrease in short-term and grand liabilities. Common stock and additional paid in secure staid the same, but there was an increase in contain ea rnings. Shareholders equity saw a substantial increase temporary hookup 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 resentment since there was a high gear increase in accounts payable 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 companionship substantially decreases between 2003 and 2004. This willing cause some concern, and anal yst would look this over to limit a reason ! for the decrease.If you extremity to get a safe essay, order it on our website: OrderCustomPaper.com

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