Using the attached income statement, write a summary discussing the implications of profitability and net income of the company.
Multi-Step Income Statement
For the Year Ended Decmber 31, 202x
Net Sales $1,833,000
Cost of Goods Sold $1,072,000
Gross Profit $761,000
Selling and Administrative Expenses
Selling Expenses $279,000
Depreciation and Amortization $14,000
General & Administrative Expenses $175,000 $468,000
Operating Profit $293,000
Other Income (Expense)
Interest Income $13,000
Earnings Before Interest and Taxes $306,000
Interest Expense $16,000
Earnings before Taxes $290,000
Income Taxes $116,000
Net Earnings $174,000
One of the most important things to remember regarding financial analysis is that the numbers are the most useful in comparison to competitors and the industry as a whole. However, given the financial data of Coyote, it may be implied that the company has a solidly performing core, posting an operating profit of ~16%. Less than 1/10th of 1% ($13,000) of the reported earnings came from outside the ...
Given the income statement of Coyote Company, profitability and net income are discussed at length.