Discuss the changes that occurred in four separate accounts. The written analysis should be 3 or 4 paragraphs, but no more than 4 paragraphs. I have provided some ideas of accounts to discuss. Remember to refer to back to the MD&A and notes to the financial statements to understand WHY the changes occurred.
Ideas for discussion
- Sales
- Gross profit margin
- Operating profit margin
- R&D expense
- Selling, general and administrative (SG&A).
- Impairment charges
- Other income & expenses
- Effective tax rate
- Net profit margin
| Results for the Years Ending (in millions) | |||
| Oct 27, 2013 | Oct 28, 2012 | Oct 30, 2011 | |
| Net sales | $ 7,509 | $ 8,719 | $ 10,517 |
| Less: Cost of goods sold | 4,518 | 5,406 | 6,157 |
| Gross profit | 2,991 | 3,313 | 4,360 |
| Sales, general and administrative | 469 | 595 | 469 |
| Research and development (R&D) | 1,320 | 1,237 | 1,118 |
| Restructuring, impairment, and amortization | 63 | 168 | |
| Purchased in-process R&D | |||
| Other operating expenses | 707 | 902 | 375 |
| Total operating expenses | 2,559 | 2,902 | 1,962 |
| Operating profit (loss) | 432 | 411 | 2,398 |
| Other income (expenses), net excluding interest expense | 13 | 39 | |
| Earnings (loss) before interest and taxes | 445 | 411 | 2,437 |
| Interest expense | 95 | 96 | 59 |
| Earnings (loss) before taxes | 350 | 316 | 2,378 |
| Provision for (benefit from) income taxes | 94 | 207 | 452 |
| Earnings (loss) after taxes | 256 | 108 | 1,926 |
| Extraordinary items, net | |||
| Discontinued operations, net | |||
| Cumulative effect of changes in accounting principles, net | |||
| Other after-tax income (loss), net | |||
| Net profit (loss) | $ 256 | $ 109 | $ 1,926 |
| Basic earnings per common share | |||
