Income For The 2016 Fiscal Year

1185 Words Apr 21st, 2016 5 Pages
Net Income for the 2016 Fiscal Year (FY)
Table 1: Statement of Income for the 2016 Fiscal Year
Fiscal year from February 2015 – January 2016 $ Billion
Net Revenues or Sales 39.53B
Cost Of Goods Sold 30.34B
Gross Profit 9.19B
Expenses from Research & Development -
Administration & Selling General expense 7.82B
Income before Depreciation Depletion Amortization 1.38B
Depreciation Depletion Amortization -
Non-Operating Income 0.015B
Expense from Interest 0.080B
Gross Profit/(Loss) before income tax 1.31B
Income Taxes Provision 0.503B
Interest from Minority -
Investment Gains (Losses) -
Income from other sources -
Income Before Disc Operations & Extra ordinaries 0.807B
Discontinued Operations & Extraordinary Items 0.090B
Net Income (Profit/Loss) for the year 0.897B

Relevance of changes in net income to investors
From Table 1 above the net income for the 2016 fiscal year is $ 0.897 Billion or $ 897 Million (Amigobulls, 2016), which has drastically dropped from the previous financial year that is 2015 fiscal year which recorded a net income of $ 1.23 Billion (Best Buy, 2015).
Investors use financial statements to identify if the company is making losses or profit thus is an indicator of whether a company is growing or not. Net income provides information to current and future investors as to whether the company or business is making money or not and this information provides insight on the likelihood or the business succeeding or failing in the long. For example if a…
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