Prepare a horizontal analysis income statement for lucent

Assignment Help Financial Accounting
Reference no: EM13535374

The telecommunications industry suffered a severe business downturn during the early part of this decade. Lucent Technologies is one of the major equipment providers to this industry. At the top of the next page are the comparative income statements for Lucent Technologies for the fiscal years ended September 30, 2001 and 2000.

1. Prepare a horizontal analysis income statement for Lucent Technologies.

2. Interpret your analysis.

Lucent Technologies Inc.

Consolidated Statements of Income

For the Years Ended September 30, 2000 and 2001

 

In millions

 

9/30/01

9/30/00

Revenues

$ 21,294

$28,904

Costs

19,236

17,190

Gross profit

$ 2,058

$11,714

Operating expenses:

 

 

Selling, general and administrative

$ 7,410

$ 5,610

Research and development

3,520

3,179

Other operating and restructuring expenses

10,157

559

Total operating expenses

$ 21,087

$ 9,348

Operating income (loss)

$(19,029)

$ 2,366

Other income (expense)-net

(357)

333

Interest expense

518

342

Income (loss) from continuing operations before

 

 

income tax expense (benefit)

$(19,904)

$ 2,357

Income tax expense (benefit)

(5,734)

924

Income (loss) from continuing operations

$(14,170)

$ 1,433

Reference no: EM13535374

Questions Cloud

Explain the percent ionization of hydrofluoric acid : The Ka for hydrofluoric acid is 7.1x10^-4. The percent ionization of hydrofluoric acid at a concentration is 0.43 mol/L is _____. looking for percent numbers since we're doing percent ionization stuff.
Calculate the average radius of jupiter : The average density of the planet Jupiter is 1327 kg/m3. The acceleration of gravity on its surface is 25.94 m/s2. Calculate the average radius of Jupiter
Examine the impact of persistent budget deficits : Examine the impact of persistent budget deficits on the trade deficit
Find the power needed to do this work : Water is at rest at the bottom of a well of depth h = 7.82 m. A pump lifts mass at a rate of dm/dt = 119 kg/minute from the well and ejects it with a speed v = 3.74. m/s. find P, the power (energy per time) needed to do this work
Prepare a horizontal analysis income statement for lucent : Prepare a horizontal analysis income statement for Lucent Technologies and interpret your analysis.
Define the original molarity of a solution of formic acid : The original molarity of a solution of formic acid with a Ka of 1.7x10^-4. Its pH is 4.52 at equilibrium is _____ mol/L
A boy stands at the peak of a hill which slopes downward : A boy stands at the peak of a hill which slopes downward uniformly at angle φ. At what angle θ from the horizontal should he throw a rock so that it has the greatest range?
Estimate what is its resistance : A small immersion heater can be used in a car to heat a cup of water for coffee or tea. What is its resistance
The magnitude of the acceleration of the block : A 3.00kg block starts from rest at the top of a 30.0 degree incline and slides a distance of 2.00m down the incline in 1.50s. Find (a)the magnitude of the acceleration of the block, (b) the coefficient of kinetic friction between block and plane, (c)..

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the cost per item in group

Group 3 consists of 500 pieces that are expected to sell for $0.72 each. Using the relative sales value method, what is the cost per item in Group 3? Please show step-by-step answer.

  Determine the total costnbsp from the given datasvens

determine the total costnbsp from the given data.svens cookhouse is a popular restaurant located on lake union in

  Blank companys balance sheet

Prepare the stockholders equity section of Blank Companys balance sheet at May 31, 2010. Net Income earned during the first three months was $15,000.

  A company currently completed 45000 units of a product that

a company currently completed 45000 units of a product that was expected to consume four pounds of direct material for

  Capital budgeting caseprofit oil company

capital budgeting caseprofit oil company inc.backgroundpetroleum rig operations financed in texas inc hereafter

  Prepare an income statement for the month ended

Exploration Services was organized on March 1, 2014. A summary of the revenue and expense transactions for March - Prepare an income statement for the month ended March 31.

  Describe difference between autonomous-induced expenditure

describe the difference between autonomous expenditure and induced expenditure. Which sectors of the economy are assumed to have both types of spending and which are not? Explain your answer.

  Estimate the stock price for year

Estimate the stock price for year s two and three, assuming that the current PE multiple remains constant for each of the two forecasted years.

  Calculation of net incomeat the end of last year roberts

calculation of net income.at the end of last year roberts inc. reported the following income statement in millions of

  Compute how many buses of each trip for the least possible

the rental cost for a large bus is800 and 600 for the small bus compute how many buses of each type should be used for the trip for the least possible cost

  Prepare an income statement for the month ending

Prepare an income statement for the month ending April 30, 2004 - accounting records of Mata Hari Realty Inc. as of April 30, 2004.

  What journal entry is recorded at the end

Assuming that Tiberand owns 25 percent of Schilling and applies the equity method, what journal entry is recorded at the end of 2010 to defer the unrealized gross profit?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd