Question 3.S-TP.2: Common-Size Statements Here is the most recent income statem...
Common-Size Statements Here is the most recent income statement for Philippe. Prepare a common-size income statement based on this information. How do you interpret the standardized net income? What percentage of sales goes to cost of goods sold?
PHILIPPE CORPORATION 2018 Income Statement ($ in millions) |
||
Sales | $4,053 | |
Cost of goods sold | 2,816 | |
Depreciation | \underline{550} | |
Earnings before interest and taxes | $687 | |
Interest paid | \underline{502} | |
Taxable income | $185 | |
Taxes (21%) | \underline{39} | |
Net income | \underline{\underline{\$ \text{ } 146}} | |
Dividends | $47 | |
Addition to retained earnings | 99 |
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