Reference no: EM132331087
Analyzing Income
The purpose of this assignment is to analyze income statements and calculate ratios in order to summarize the financial performance of a company.
The ability to analyze the content of an income statement, profit and loss statement, and statement of earnings is an essential skill when assessing a company's revenue and trends associated with the company's financial performance.
Assume that the accounting manager has asked you to provide a summary presentation about the financial performance of the company over the past 3 years. You need to prepare 5 slides Power Point presentation of your findings to the accounting manager and other company stakeholders as part of a management meeting.
In the Form 10-K for the company you selected SOUTHWEST AIRLINE COMPANY
in the Topic 1 assignment, access the income statement (also called the profit and loss statement or statement of earnings) information and review it. Calculate the following ratios over the past 3 years for use in your presentation:
1. Gross profit
2. Net profit
3. Return on assets
Create a 5 slide PowerPoint presentation that summarizes your analysis and addresses the following:
1. Based on actual dollars, discuss the company's performance compared to the prior year. Explain how you can tell whether the company is performing better or worse, and highlight at least three items from the income statement that justify your assessment.
2. Explain any changes or growth in the marketplace that have contributed to the company's performance.
3. Summarize the revenue trends for the company.
4. Summarize company expenses and whether they are increasing or decreasing. Highlight at least two expenses and discuss the significance of the increase or decrease in each of the expenses over time.
5. Provide the gross profit, net profit, and return on assets ratios for the past 3 years and discuss the significance of the results.
Refer to the resource, "Creating Effective PowerPoint Presentations," located in the Student Success Center, for additional guidance on completing this assignment in the appropriate style.