Using the Following Information from an Annual Report, Prepare a Vertical

question 25

Essay

Using the following information from an annual report, prepare a vertical analysis of the consolidated statement of earnings for the fiscal year ended June 30, 20xx. (Round percentage answers to one decimal place.)
$\begin{array}{l}\begin{array}{l}\\\text{Net sales}\\\text{Cost of sales}\\\text{Grossmargin}\\\text{Selling, general, and administrative expenses}\\\text{Depreciation, amontization, and assetwrite-offs}\\\text{Total operating expenses}\\\text{Income from operations}\\\text{Interest expense}\\\text{Interest and other income}\\\text{Earnings before income taxes}\\\text{Income taxes}\\\text{Net earring}\end{array}\begin{array}{r}\text { (In millions) } \\\$ 11,862 \\8,321 \\\hline \$ 3,541 \\\hline \$ 2,743 \\ 278 \\\hline \$ 3,021 \\\hline \$ \quad 520 \\(91) \\ \quad 11 \\\hline \$ 440 \\\quad 161 \\\hline \$ 279\end{array}\end{array}$

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Definitions:

Price Discriminate

A pricing strategy where a seller charges different prices for the same product or service to different customers, based not on costs, but on willingness to pay.

Economic Profit

The separation between overall turnover and cumulative costs, incorporating both direct and indirect expenditures.

Profit-Maximizing Monopolist

A monopoly firm that aims to achieve the highest possible profit by adjusting the price and output of its product or service.

Total Cost Schedules

A detailed list showing the total cost associated with various levels of output production.