Analyzing an Income Statement Draft
WEEK 4
Hagga Johnson 10-26-2014 ACC/230
Complete Problem 3.16b on p. 111 (Ch. 3).
Analyze the income statement of Eastman Kodak, located athttp://wps.prenhall.com/bp_fraser_financial_8. Select Chapter 1 from the top menu, and then select Internet Links in the left-hand menu to access the income statement.
Write a 200- to 300-word response to the problem. In addition, include your analysis of indicators such as earnings per share, operating income, and comprehensive income.
Analyze the income statement of Eastman Kodak. Write a summary that includes important points that an analyst would use in assessing the profitability of Eastman Kodak.
After looking at Eastman Kodak income statements, they show an improvement of 120% for 2004 compared to 2003. This is due to the change in procedures were a prime effect that had a rise of 642%. Even with the company’s continued operations declined to 57%. In addition, Eastman Kodak had assets change of $5,000 growth for the cash equivalents and cash, with an additional receivables growth of $217 million. It was also $80 million rise for their inventories net for the year of 2004. In Addition, 2004 they had a deferred tax reduction of $40 million compared to 2003 (Kodak.com. 2014). With property, equipment, and plant net decreasing by $539,000 for the year of 2004, they were able to increase long-term and goodwill assets by $202,000 and $97,000 for 2004. With no dropped operations requested for 2004 in long-term assets made a decrease of $109,000 for total assets for both years.
The film market annual report growth rate is approximately 2%. Therefore, Kodak should not anticipate a large amount of customers; therefore, they have to find ways to get them to buy their product. Prospective consumers are not only the ones whom purchase competitors’ products but future customers like children. For that reason, the main objective for Kodak is to have about 76% for a new...