THE INCOME STATEMENT
1. Locate the company’s income statement.

Income Statement Date: __________________

Page on which income statement appears: _________

What is the period covered by the income statement? _________________________

2. How does the net income for this year compare to last? What caused the change, use the notes to the income statement to support your reason?

3. What are the accounts (not totals, but accounts i.e., net income is a total, wage expense is an account) that catch your attention compared to the previous year’s income statement? List at least 3 and briefly explain why you selected each one. (Total Expenses or Net Income are not accounts, they are totals or labels for totals.) Explanation must say more than the figure increased or decreased, why would that be of interest?
4. What could explain the changes from one year to another for each account selected in number 2? Your answer explains the why it changed, not how much it changed. Your reasons must be supported by data provided in the company’s annual report.