Solution to BTN-Chapter 13

# Solution to BTN-Chapter 13 - Reporting in Action BTN 13-1 1...

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Reporting in Action — BTN 13-1 1. Trend percents for selected income statement accounts (\$ in millions) Fiscal 2012 Fiscal 2011 Fiscal 2010 Net Sales ............................................................... 240.0% 166.0% 100.0% \$156,508 \$108,249 \$65,225 Cost of sales ......................................................... 222.2% 162.9% 100.0% \$87,846 \$64,431 \$39,541 Operating income ................................................. 300.5% 183.8% 100.0% \$55,241 \$33,790 \$18,385 Other income/(expense) ...................................... 336.8% 267.7% 100.0% \$522 \$415 \$155 Income taxes (provision for income taxes) ....... 309.9% 183.0% 100.0% \$14,030 \$8,283 \$4,527 Net income ............................................................ 297.8% 185.0% 100.0% \$41,733 \$25,922 \$14,013 2. Common-size percents for asset categories and accounts (\$ in millions) Sep. 29, 2012 Sep. 24, 2011 Total current assets ............................................. 32.7% 38.7% \$57,653 \$44,988 Property, plant and equipment, net .................... 8.8% 6.7% \$15,452 \$7,777 Goodwill and other intangible assets ................. 3.0% 3.8% \$5,359 \$4,432 Total assets as of September 29, 2012 and September 24, 2011 are \$176,064 and \$116,371, respectively. 3. For fiscal 2012 and 2011, revenues grew at a higher rate than cost of sales. Operating income grew at a higher rate than revenues for fiscal 2012 and 2011. Non-operating income increased substantially in 2012 and 2011, relative to fiscal 2010. Consequently, income increased for 2012 and 2011, at a higher rate than revenue growth. The common-size percent figures in part 2 show a shift away from current assets (32.7% in 2012 vs. 38.7% in 2011) and greater investment

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