Discuss the numbers and balance sheet ratios

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Summarize IBM's common size income statement, based on IBMs Income statement data of its 2013 annual report, page 78. discuss the numbers and balance sheet ratios, and specify trends that identify areas of strength, stability and possible concern.

Total Revenue: 2013: $ 99,751 at 100%; 2012: $104,507 at 100%; 2011: $106,916 at 100%

Total Costs: 2013: $51,246 at 51.37%; 2012: $51,246 at 51.87%; 2011: $56,778 at 53.11%

Gross Profits: 2013: $48,505 at 48.63%; 2012: $50,298 at 48.13%; 2011: $50,138 at 46.89%

Expenses and Income (Interest Expense) = 2013: $402 at 0.40%; 2012: $459 at 0.44%; 2011: $411 at 0.38%

Total Expense and Other Income: 2013: $28,981 at 29.05%; 2012: $28,397 at 27.1%; 2011: $29,135 at 27.25%

Income before tax: 2013: $19,544 at 19.57%; 2012: $21,901 at 20.96%; 2011: $21,003 at 19.64%

Net Income: 2013: $16,483 at 16.52%; 2012: $16,663 at 15.89%; 2011: $15,885 at 14.83%

Reference no: EM131214638

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