2.3 Income Statement Analysis

Apple, Inc. Consolidated Statements of Operations Analysis

Before proceeding to the next video, use the attached Apple Financial Statements to complete the attached Apple Consolidated Statement of Operations worksheet.

Purpose of the Income Statement

• Track key data

• Analyze profitability

• "Above the line" and "below the line"

• Analyze growth rates:

• Revenue

• Expenses

• Profit

Income Statement Guidelines

• Look for the period of time and name (company, division, etc.).

• Determine if it is "in thousands", "in millions", or "as is."

• Find the major categories – revenue, expenses, and income.

• Determine data presented – actual, budget, previous year, etc.

• Read any relevant notes.

Apple, Inc. Income Statement Analysis

Calculations