Molson Cors

927 Words Jan 30th, 2013 4 Pages
Molson Coors Brewing Company
a. What are the major classifications on an Income Statement?

Sales, Cost of Goods Sold (COGS), OPERATING PROFIT (Includes A&M (Advertising & Marketing), G&A (General & Administrative Expenses)), OIOE (Other Income & Other Expenses), Earnings Before Interests and Taxes (EBIT) and Net Income.

b. Explain why, under GAAP, companies are required to provide “Classified” income statements.

First of all, because this helps to prevent fraudulent practices. It makes easier for management, shareholders and potential investors to digest the information. It also allows comparing these statements against business competitors or the company’s own past statements to measure
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i. Consider the “Cumulative effect of change in accounting principle” reported on the income statement. Explain in your own words what item represents.

Is the cost as a result of a legal requirement for retiring a tangible long-lived asset that results from acquiring or operating that same asset.


j. Examine Molson Coors income statement for 2007 and 2006 and the relevant Notes to the financial statements.


* Unrealized loss/gain on derivative instruments Operating derivatives is not a core activity of the company. (These are used to hedge and diminish potential risks) * Other Income / Income These do not represent any core activities of the company (Disposal of Non-Operating Assets, Investments, Non-Operating Leases, or customer loans). * Pension and other postretirement benefit adjustments This is not part of the core activities of the company.



CONCEPTS | 2007.00 | 2006.00 | NET Operating Profit | $ 490,300.20 | $ 194,786.70 |


Current Notes receivable, loans are not part of the core business.
Discontinued Operations – Former operating items.
Affiliates – ??
Goodwill- Related to mergers and acquisitions.


| 2007 | 2006 | Total Assets | $ 13,451,566.00 | $ 11,603,413.00 | Disc Op | $ 434.00 |
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