Question :
172.Using the following information from an annual report, prepare a : 1244264
172.Using the following information from an annual report, prepare a horizontal analysis of the consolidated statements of earnings. (Round percentage answers to one decimal place.)
(In millions except per share data)
June 30, 20×8
June 30, 20×7
Net sales
$11,862
$11,170
Cost of sales
8,321
8,191
Gross margin
$ 3,541
$ 2,979
Operating expenses:
Selling, general, and administrative expenses
$ 2,743
$ 2,443
Depreciation, amortization, and asset write-offs
278
255
Total operating expenses
$ 3,021
$ 2,698
Other charges
294
Total operating expenses and other charges
$ 3,021
$ 2,992
Income (loss) from operations
$ 520
($ 13)
Interest expense
(91)
(102)
Interest and other income
11
9
Earnings (loss) before income taxes
$ 440
($ 106)
Income taxes
161
26
Net earnings (loss)
$ 279
($ 132)
Basic earnings (loss) per share
$ 1.14
($ 0.50)
Increase (Decrease)
(In millions except per share data)
June 30, 20×8
June 30, 20×7
Amount
Percentage
Net sales
Cost of sales
Gross margin
Operating expenses:
Selling, general, and administrative expenses
Depreciation, amortization, and asset write-offs
Total operating expenses
Other charges
Total operating expenses and other charges
Income (loss) from operations
Interest expense
Interest and other income
Earnings (loss) before income taxes
Income taxes
Net earnings (loss)
Basic earnings (loss) per share
173.Using the following information reported in an annual report, prepare a horizontal analysis of the consolidated balance sheets. (Round percentage answers to one decimal place.)
(In millions)
June 30, 20×8
June 30, 20×7
Cash and cash equivalents
$ 584
$ 410
Accounts and other receivables
182
204
Merchandise inventories
2,027
1,902
Prepaid expenses and other current assets
80
81
Total current assets
$2,873
$2,597
Real estate, net
$2,342
$2,354
Other, net
2,113
1,872
Total property and equipment
$4,455
$4,226
Goodwill, net
$ 374
$ 347
Other assets
651
729
Total assets
$8,353
$7,899
Short-term borrowings
$ 278
$ 156
Accounts payable
1,617
1,415
Accrued expenses and other current liabilities
836
696
Income taxes payable
107
224
Total current liabilities
$2,838
$2,491
Long-term debt
$1,230
$1,222
Deferred income taxes
362
333
Other liabilities
243
229
Total liabilities
$4,673
$4,275
Common stock
$ 30
$ 30
Additional paid-in capital
453
459
Retained earnings
4,757
4,478
Foreign currency translation adjustments
(137)
(100)
Treasury shares, at cost
(1,423)
(1,243)
Total stockholders’ equity
$3,680
$3,624
Total liabilities and stockholders’ equity
$8,353
$7,899
(In millions)
June 30,
20×8
June 30,
20×7
Increase Amount
(Decrease) Percentage
Cash and cash equivalents
Accounts and other receivables
Merchandise inventories
Prepaid expenses and other current assets
Total current assets
Real estate, net
Other, net
Total property and equipment
Goodwill, net
Other assets
Total assets
Short-term borrowings
Accounts payable
Accrued expenses and other current liabilities
Income taxes payable
Total current liabilities
Long-term debt
Deferred income taxes
Other liabilities
Total liabilities
Common stock
Additional paid-in capital
Retained earnings
Foreign currency translation adjustments
Treasury shares, at cost
Total stockholders’ equity
Total liabilities and stockholders’ equity
