Analyze the elf corporations profit performance for period

Assignment Help Financial Accounting

Reference no: EM13899524

Writing Skills Problem

Income statements are presented for the Elf Corporation for the years ending December 31, 2013, 2012, and 2011.

Elf Corporation Income Statements for the Years Ending December 31, 2013, 2012, and 2011

(in millions)	2013	2012	2011
Sales	$700	$650	$550
Cost of goods sold	350	325	275
Gross profit Operating expenses:	$350	$325	$275
Administrative	100	100	100
Advertising and marketing	50	75	75
Operating profit	$200	$150	$100
Interest expense	70	50	30
Earnings before tax	$130	$100	$ 70
Tax expense (50%)	65	50	35
Net income	$ 65	$ 50	$ 35

Required: Write a one-paragraph analysis of Elf Corporation's profit performance for the period.

To the Student: The focus of this exercise is on analyzing financial data rather than simply describing the numbers and trends. Analysis involves breaking the information into parts for study, relating the pieces, making comparisons, drawing conclusions, and evaluating cause and effect.

Reference no: EM13899524

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