Company besides Apple and Walmart. Please help!! Real World Case 4-14 Income sta

Question

Company besides Apple and Walmart. Please help!!

Real World Case 4-14 Income statement information LO4-1E,LO4-32,LO4-4 Real World Financials EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law to file forms with the US Securities and change Commission .AI ut c e domestic companies use EDGAR to make the majority of their filings. (Some foreign companies file voluntarily.) Form 10-K, which includes the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet Required: 1. Access EDGAR on the Internet. The web address is www.sec.gov 2. Search for a public company with which you are familiar. Access the most recent 10-K filing. Search or scroll to find the financial statements and related notes. 3. Answer the following questions related to the company's income statement a. Does the company use the single-step or multiple-step format, or a variation? b. Does the income statement contain any income or loss on discontinued operations? If it does, describe the component of the company that was discontinued. (Hint there should be a related disclosure note.) c. Describe the trend in net income over the years presented 4. Repeat requirements 2 and 3 for two additional companies

Explanation / Answer

4)

Two additional public companies picked are Microsoft and Amazon.

Microsoft

3a) Company uses the multi step format for income statement preparation. A multiple-step income statement reveals difference between its sales revenue and its cost of goods sold, and operating profit. Investors and financial analysts often use this format's statements to determine a company's overall health.

3b) The company has no income or loss from discontinued operations but it has a mention of a new acquisition (LinkedIn corp.) listed on it's notes.

3c) There's a sharp rise in the income of the company from $12,193 m in 2015 to $21,204 m in 2017. The Income has increased by roughly 74% in the last 2 years, which I may say is a commendable growth for a company.

Amazon

3a) Multiple-step format for the income statement.

3b) No mention of any discontinued operations but reflects upon the acquisition of Twitch Interactive Inc and various other companies (in last 2 years) to acquire know-how to serve the customers more effectively.

3c) Company was in a loss of $241 m in 2014 but soon recovered to $596 m in 2015 and $2371 m in 2016 which is a gigantic leap from the figure of the year 2014, almost an increase of 108%.

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