Complete a horizontal analysis of the income statement

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Reference no: EM131082992

Walgreens Income Statement

 

 

Period Ending

Aug 31, 2013

Aug 31, 2012

Total Revenue

72,217,000

71,633,000

Cost of Revenue

51,098,000

51,291,000

Gross Profit

21,119,000

20,342,000

Operating Expenses

 

 

Research Development

-

-

Selling General and Administrative

17,543,000

16,878,000

Operating Income or Loss

3,940,000

3,464,000

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

140,000

-

Earnings Before Interest And Taxes

4,060,000

3,464,000

Interest Expense

165,000

88,000

Income Before Tax

3,895,000

3,376,000

Income Tax Expense

1,445,000

1,249,000

Net Income From Continuing Ops

2,794,000

2,127,000

Net Income

2,450,000

2,127,000

 

WALGREENS BALANCE SHEET FOR 2012 AND 2013
Period Ending

Aug 31, 2013

Aug 31, 2012

Assets

 

 

Current Assets

 

 

Cash And Cash Equivalents

2,106,000

1,297,000

Short Term Investments

-

-

Net Receivables

2,632,000

2,167,000

Inventory

6,852,000

7,036,000

Other Current Assets

284,000

260,000

Total Current Assets

11,874,000

10,760,000

Long Term Investments

7,100,000

7,006,000

Property Plant and Equipment

12,138,000

12,038,000

Goodwill

2,410,000

2,161,000

Intangible Assets

-

-

Accumulated Amortization

-

-

Other Assets

1,959,000

1,497,000

Deferred Long Term Asset Charges

-

-

Total Assets

35,481,000

33,462,000

Liabilities

 

 

Current Liabilities

 

 

Accounts Payable

8,313,000

7,403,000

Short/Current Long Term Debt

570,000

1,319,000

Total Current Liabilities

8,883,000

8,722,000

Long Term Debt

4,477,000

4,073,000

Other Liabilities

2,067,000

1,886,000

Deferred Long Term Liability Charges

600,000

545,000

Total Liabilities

16,027,000

15,226,000

Stockholders' Equity

 

 

Common Stock

80,000

80,000

Retained Earnings

21,523,000

20,156,000

Treasury Stock

(3,114,000)

(2,985,000)

Capital Surplus

1,074,000

936,000

Other Stockholder Equity

(109,000)

49,000

Total Stockholder Equity

19,454,000

18,236,000

INSTRUCTIONS:

Using the Income Statement and Balance Sheet, please perform the following instructions.

1. Complete a Horizontal Analysis of the 2013 Income Statement

2. Complete a Vertical Analysis of the 2013 and 2012 Income Statement using Total Revenue as the base amount.

3. Indicate any unusual trends identified using Horizontal or Vertical Analysis.

4. Using the Balance Sheet of 2012 and 2013, compute the following ratios FOR 2012 AND 2013:

i. Current Ratio
ii. Inventory Turnover. Only Compute for 2013
iii. Gross Profit Percentage.
iv. AR Turnover. Only Compute for 2013. Please assume all revenue was sold on credit.
v. Debit-to-Equity Ratio
vi. Earnings Per Share (EPS). Please note Weighted Average Number of Shares Outstanding for 2013 was: 946,595,578 and for 2012 was 944,055,334

5. Identify any ratio changes from 2012 to 2013.

Reference no: EM131082992

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