Describe the trend of operating income from 2007 to 2010. What observations can be drawn?Describe the trend of net income from 2007 to 2010. What observations can be drawn? ABS-CBN CORP.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEcurrency in philippine pesos, in millionsVertical Analysis2010200920082007Revenues100.0%100.0%100.0%100.0%Cost of Sales52.5%58.4%59.5%55.1%GROSS PROFIT (Gross Income/Net Revenues)47.5%41.6%40.5%44.9%Selling General & Admin Expenses, Total26.7%25.6%24.4%26.7%Depreciation & Amortization, Total2.5%3.0%3.7%3.2%Other Operating Expenses1.3%1.0%1.2%1.2%OTHER OPERATING EXPENSES, TOTAL30.4%29.6%29.3%31.1%0.0%0.0%0.0%INCOME FROM OPERATIONS (Operating Income)17.1%12.0%11.2%13.8%|Interest Expense-3.7%-4.0%-3.5%-2.9%Interest and Investment Income0.4%0.4%0.5%0.6%|Income (Loss) on Equity Investments0.0%0.0%0.0%0.1%Currency Exchange Gains (Loss)Other Non-Operating Income (Expenses)Gain (Loss) on Sale of InvestmentsOther Unusual Items0.8%0.4%-0.1%1.1%1.3%2.3%2.7%-0.8%-0.2%0.0%0.0%0.0%0.0%0.0%1.6%1.1%INCOME BEFORE TAX15.7%11.1%12.3%13.1%Income Tax Expense4.0%3.1%5.3%5.7%NET INCOME11.7%8.0%7.1%7.4%

Solution:- 1)Analysis of the trend of operating income from 2007 to 2010 as follows under:- Ratio…

Answered: Describe the trend of operating income…

Describe the trend of operating income from 2007 to 2010. What observations can be drawn? Describe the trend of net income from 2007 to 2010. What observations can be drawn?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.3P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information:     20Y8     20Y7     20Y6     20Y5     20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:   20Y4–20Y8 Return on total assets 28%…
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