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What can you say about the company’s performance throughout the years? 2. What can you say about the sales performance of the company from 2008 to 2009? Research on what could have happened during that period which led to the results of your horizontal analysis?

What can you say about the company’s performance throughout the years? 2. What can you say about the sales performance of the company from 2008 to 2009? Research on what could have happened during that period which led to the results of your horizontal analysis?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using Pfizer’s Income Statement, perform a horizontal analysis and answer the following questions: 1. What can you say about the company’s performance throughout the years? 2. What can you say about the sales performance of the company from 2008 to 2009? Research on what could have happened during that period which led to the results of your horizontal analysis?

PFIZER, INC. Statements of Income and Retained Earnings (Amounts in Thousands) Years Ended November 30, 2012 2011 2010 2009 Sales 7,942,372 6,755,816 6,315,541 5,265,330 6,068,737 2,998,287 3,244,438 2,923,505 2,473,061 4,697,934 3,832,312 3,842,480 Cost of Sales 3,468,663 Gross Profit 1,796,667 3,070,450 Operating Expenses Personnel costs 1,174,405 1,502,683 1,212,915 778,392 852,960 Advertising 620,109 625,237 401,763 227,023 217,257 Outside services 354,625 301,569 178,233 171,410 60,295 Medical and scientific conventions 338,582 457,603 520,688 386,055 514,707 Distribution 83,989 41,716 148,672 223,908 17,606 Commissions 214,389 203,532 Travel and transportation 193,880 233,350 246,334 178,278 185,516 Impairment losses on receivables 26,717 233,811 2,522 192 688 Depreciation and amortization 134,403 140,877 122,700 127,899 126,754 Others 217,265 262,263 463,314 525,041 592,756 Total operating expenses 3,143,974 3,799,110 3,297,141 2,832,587 2,772,072 income (Loss) from Operations 1,553,961 33,201 545,339 (1,035,920) 298,379 Other Income (Charges) Distribution income 78,858 270,258 Foreign exchange gain (loss), net 21,789 5,926 43,394 1,445 (31,073) Interest income 51,193 4,722 386 1,527 2,505 Finance costs (1,631) (10,699) (48,760) (105,752) (136,333) Gain on sale of discontinued operations Gain on sale of property and equipment 157,627 24,348 10,315 2,259 4,076 9,736 Gain on reversal of long outstanding liabs 229,801 Others 49,426 20,615 (1,457) 88,305 (32,907) Total other income (charges) 145,125 Income (Loss) Before Income Tax Expense 1,699,085 418,306 (4,178) 68,459 82,186 451,508 541,161 (967,461) 380,565 Income Tax Expense Current 525,004 68,048 88,531 39,907 126,023 Deferred (27,573) 64,411 (597,972) 182,877 50,817 Net provision for income tax 497,431 132,459 (509,441) 222,784 176,841 İncome (Loss) from Continuing Operations 1,201,654 319,048 1,050,602 (1,190,245) 203,724 After-Tax Income from Discont'd Operation: 108,688 110,565 - Net Income (Loss) 1,310,343 429,613 1,050,602 (1,190,245) 203,724 Retained Earnings Balance, beginning 1,494,216 1,064,603 329,215 1,519,461 1,315,736 Prior period adjustment" (453,183) Transactions with owners 26,449 Effect of reclassification of entries 137,968 Balance, ending 2,831,007 1,494,216 1,064,603 329,215 1,519,461 Earnings (Loss) Per Share 71.412 23.413 57.259 (64.867) 11.100
Transcribed Image Text:PFIZER, INC. Statements of Income and Retained Earnings (Amounts in Thousands) Years Ended November 30, 2012 2011 2010 2009 Sales 7,942,372 6,755,816 6,315,541 5,265,330 6,068,737 2,998,287 3,244,438 2,923,505 2,473,061 4,697,934 3,832,312 3,842,480 Cost of Sales 3,468,663 Gross Profit 1,796,667 3,070,450 Operating Expenses Personnel costs 1,174,405 1,502,683 1,212,915 778,392 852,960 Advertising 620,109 625,237 401,763 227,023 217,257 Outside services 354,625 301,569 178,233 171,410 60,295 Medical and scientific conventions 338,582 457,603 520,688 386,055 514,707 Distribution 83,989 41,716 148,672 223,908 17,606 Commissions 214,389 203,532 Travel and transportation 193,880 233,350 246,334 178,278 185,516 Impairment losses on receivables 26,717 233,811 2,522 192 688 Depreciation and amortization 134,403 140,877 122,700 127,899 126,754 Others 217,265 262,263 463,314 525,041 592,756 Total operating expenses 3,143,974 3,799,110 3,297,141 2,832,587 2,772,072 income (Loss) from Operations 1,553,961 33,201 545,339 (1,035,920) 298,379 Other Income (Charges) Distribution income 78,858 270,258 Foreign exchange gain (loss), net 21,789 5,926 43,394 1,445 (31,073) Interest income 51,193 4,722 386 1,527 2,505 Finance costs (1,631) (10,699) (48,760) (105,752) (136,333) Gain on sale of discontinued operations Gain on sale of property and equipment 157,627 24,348 10,315 2,259 4,076 9,736 Gain on reversal of long outstanding liabs 229,801 Others 49,426 20,615 (1,457) 88,305 (32,907) Total other income (charges) 145,125 Income (Loss) Before Income Tax Expense 1,699,085 418,306 (4,178) 68,459 82,186 451,508 541,161 (967,461) 380,565 Income Tax Expense Current 525,004 68,048 88,531 39,907 126,023 Deferred (27,573) 64,411 (597,972) 182,877 50,817 Net provision for income tax 497,431 132,459 (509,441) 222,784 176,841 İncome (Loss) from Continuing Operations 1,201,654 319,048 1,050,602 (1,190,245) 203,724 After-Tax Income from Discont'd Operation: 108,688 110,565 - Net Income (Loss) 1,310,343 429,613 1,050,602 (1,190,245) 203,724 Retained Earnings Balance, beginning 1,494,216 1,064,603 329,215 1,519,461 1,315,736 Prior period adjustment" (453,183) Transactions with owners 26,449 Effect of reclassification of entries 137,968 Balance, ending 2,831,007 1,494,216 1,064,603 329,215 1,519,461 Earnings (Loss) Per Share 71.412 23.413 57.259 (64.867) 11.100
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