How to provide a horizontal analysis of estee lauder income

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Reference no: EM132507150

Question1 : How to provide a horizontal analysis of Estee Lauder's income statement and balance sheet, showing the dollar amount and percent of change using the 2 most recent years (Excel spreadsheet with formulas).

Income Statement:

PERIOD ENDING:                         6/30/2019,                6/30/2018,               6/30/2017,                         6/30/2016

Total Revenue                       $14,863,000                 $13,683,000              $11,824,000                    $11,262,000

Cost of Revenue                   $3,387,000                   $2,844,000                      $2,434,000                   $2,181,000

Gross Profit                       $11,476,000                      $10,839,000                    $9,390,000                    $9,081,000

OPERATING EXPENSES

Research and Development           $0                             $0                                     $0                                 $0

Sales, General and Admin.          $8,857,000                    $8,553,000                         $7,460,000                  $7,338,000

Non-Recurring Items               $306,000                           $231,000                               $226,000                      $133,000

Other Operating Items                         $0                              $0                                $0                                     $0

Operating Income                      $2,313,000                     $2,055,000                        $1,704,000                         $1,610,000

Add'l income/expense items          $127,000                       $53,000                          $16,000                               $16,000

Earnings Before Interest and Tax      $2,440,000                 $2,108,000                        $1,720,000                      $1,626,000

Interest Expense                            $133,000                      $128,000                        $103,000                          $71,000

Earnings Before Tax                       $2,307,000                    $1,980,000                         $1,617,000                  $1,555,000

Income Tax                                $513,000                           $863,000                          $361,000                      $434,000

Minority Interest                               $0                               $0                                        $0                               $0

Equity Earnings/Loss Unconsolidated Subsidiary -$9,000            -$9,000                            -$7,000                         -$6,000

Net Income-Cont. Operations           $1,785,000                     $1,108,000                       $1,249,000                      $1,115,000

Net Income                                       $1,785,000                    $1,108,000                    $1,249,000                  $1,115,000

Net Income Applicable to Common Shareholders $1,785,000            $1,108,000                      $1,249,000                   $1,115,000

Balance Sheet:

PERIOD ENDING:                           6/30/2019,                      6/30/2018,                   6/30/2017,                    6/30/2016

CURRENT ASSETS

Cash and Cash Equivalents             $2,987,000                    $2,181,000                   $1,136,000                  $914,000

Short-Term Investments                      $0                            $534,000                      $605,000                        $469,000

NetReceivables                               $1,831,000                   $1,487,000                      $1,395,000                  $1,258,000

Inventory                                       $2,006,000                       $1,618,000                    $1,479,000                $1,264,000

Other Current Assets                        $388,000                             $348,000                         $349,000                 $320,000

Total Current Assets                      $7,212,000                             $6,168,000                    $4,964,000                    $4,225,000

LONG-TERM ASSETS

Long-Term Investments                       $177,000                                 $843,000                       $1,026,000                  $1,108,000

FixedAssets                                        $2,068,000                          $1,823,000                            $1,671,000              $1,583,000

Goodwill                                          $1,868,000                               $1,926,000                        $1,916,000               $1,228,000

Intangible Assets                                 $1,203,000                                $1,276,000                         $1,327,000              $344,000

Other Assets                                     $628,000                                   $531,000                             $664,000                $735,000

Deferred Asset Charges                              $0                                        $0                                         $0                         $0

Total Assets                                              $13,156,000                     $12,567,000                           $11,568,000           $9,223,000

CURRENT LIABILITIES

Accounts Payable                                        $4,089,000                        $3,127,000                       $2,634,000$                2,349,000

Short-Term Debt / Current Portion of Long-Term Debt  $516,000                   $183,000                        $189,000                    $332,000

Other Current Liabilities                                      $0                                    $0                               $0                                $0

Total Current Liabilities                                 $4,605,000                            $3,310,000                      $2,823,000              $2,681,000

Long-Term Debt                                           $2,896,000                        $3,361,000                            $3,383,000            $1,910,000

Other Liabilities                                              $1,244,000                       $1,186,000                               $960,000          $1,045,000

Deferred Liability Charges                                         $0                            $0                                     $0                          $0

Misc. Stocks                                                    $25,000                              $22,000                     $18,000                      $15,000

Minority Interest                                                      $0                                    $0                           $0                            $0

Total Liabilities                                                   $8,745,000                        $7,857,000                      $7,166,000          $5,636,000

STOCK HOLDERS EQUITY

Common Stocks                                                  $6,000                               $6,000                               $6,000                  $6,000

Capital Surplus                                                  $9,984,000                              $9,040,000                   $8,452,000         $7,693,000

Retained Earnings                                             -$9,444,000                         -$7,896,000                -$7,149,000            -$6,743,000

Treasury Stock                                                     $4,403,000                             $3,972,000            $3,559,000           $3,161,000

Other Equity                                                   -$563,000                                   -$434,000                -$484,000           -$545,000

Total Equity                                                    $4,386,000                               $4,688,000              $4,384,000           $3,572,000

Total Liabilities & Equity                                 $13,156,000                               $12,567,000              $11,568,000           $9,223,000

Reference no: EM132507150

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