The consolidated statement of earnings for fiscal year 2008
1.The consolidated statement of earnings for Fiscal year 2008 tells us that the company’s revenue and profitability declined as compared to previous years, primarily due to the tough economic situation and recession in the country. Even though the top line decreased, the company was not able to reduce its selling and administrative expenses, which impacted its bottom line profitability. The net earnings of the company was reduced to almost half of previous year’s earnings due to tough economic situation.
2. What does the balance sheet tell you about the company?
3. What does the statement of cash flows tell you about the company?
4. What information is provided in the statements that will assist you in making these business decisions? What information is not provided that could assist in managerial decision making?