GibsonSM_08 - Chapter 8 Profitability TO THE NET 1. a. 2060...

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Chapter 8 Profitability TO THE NET b. Hershey Foods Corporation, its wholly-owned subsidiaries and entities in which it has a controlling financial interest (the “Company”) are engaged in the manufacture, distribution, and sale of confectionery, snack, refreshment, and grocery products. c. Horizontal Common-Size 2004 2003 2002 Net sales 107.5 101.3 100.0 Income before income taxes 131.1 114.9 100.0 Net income 146.4 113.4 100.0 d. Very material increase in income before income taxes and net income. Only a moderate increase in net sales. 2. a. SIC 2000 Food and Kindred Products b. Flowers Foods, Inc. was incorporated in Georgia in October 2000. c. (Amounts in thousands) For the 52 weeks ended January 1, 2005 For the 53 weeks ended January 1, 2004 For the 52 weeks ended December 28, 2002 Sales $1,551,308 $1,452,995 $1,328,607 Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization, shown separately below) 779,437 720,162 651,886 Selling, marketing, and administrative expenses 632,895 601,013 554,078 Depreciation and amortization 56,702 53,935 56,774 Asset impairment 2,132 Income from operations 82,274 77,885 63,737 195
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d. For the 52 weeks ended January 1, 2005 For the 53 weeks ended January 1, 2004 For the 52 weeks ended December 28, 2002 Sales 116.8 109.4 100.0 Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization, shown separately below) 119.6 110.5 100.0 Selling, marketing, and administrative expenses 114.2 108.5 100.0 Depreciation and amortization 99.9 95.0 100.0 Asset impairment 100.0 Income from operations 129.1 122.2 100.0 e. Two of the years had 52 weeks, while one had 53 weeks. This distracts from the comparability. f. Materials, Supplies, etc., increased slightly more than sales. Selling, Marketing, etc., increased slightly less than sales. Depreciation and amortization declined moderately in the second year and increased to approximately the first year’s amount. Asset impairment was only in the first year. Income from Operations increased materially more than sales. 196
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3. a. Intel Corporation 2. We are the world’s largest semiconductor chip maker, supplying advanced technology solutions for the computing and communications industries. 3. (In Millions) 2004 2003 2002 Net revenue $34,209 $30,141 $26,764 Cost of sales 14,463 13,407 13,446 Operating income 10,130 7,533 4,382 b. Advanced Micro Devices, Inc. 2. We are a leading semiconductor company with manufacturing facilities in the United States, Europe, and Asia, and sales offices throughout the world. (In Thousands)
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GibsonSM_08 - Chapter 8 Profitability TO THE NET 1. a. 2060...

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