KMBSolution12 - Kimberly-Clark Corporation (KMB) Solution...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Kimberly-Clark Corporation (KMB) Solution to Continuing Case, Chapter 12 REFORMULATION TO IDENTIFY CORE INCOME AND SUSTAINABLE INCOME Before proceeding to a thorough analysis of the change in profitability from 2003 to 2004, recast the income statement in a way that identifies core income and sustainable income. This involves a modification of the reformulated statement you developed in Chapter 9. (Each modification is explained in a footnote.) The refined income classifications enable a deeper financial statement analysis (in this chapter) and readies the income statement for forecasting and valuation (in subsequent chapters). KIMBERLY-CLARK CORPORATION Reformulated Income Statements (in millions) 2004 2003 Net Sales $ 15,083.2 $14,026 .3 Cost of products sold 10,014.7 9,231.9 Gross Margin 5,068.5 4,794.4 Operating expenses Advertising expenses 421.3 401.9 279.7 279.1 General expenses 1,809.9 1,669.3 Other expenses, net 51.2 2,562.1 112.5 2,462.8 Operating income from sales, before adjustments 2,506.4 2,331.6 Adjustments for non-core income: Expected return on pension plan assets 1 (324.0) (286.3) Actuarial pension loss 2 83.3 74.0 Losses on asset dispositions 3 45.5 (195.2) 35.0 (177.3) Core operating income from sales, before tax 2,311.2 2,154.3 Tax as reported 483.9 484.1 Tax benefit of fuels partnership 4 199.8 131.3 Tax on other operating income 5 (80.1) (81.1) Tax on financial items 6 51.5 655.1 53.3 587.6 Core operating income from sales, after tax
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/07/2010 for the course ECTCS ec12947322 taught by Professor Johnathayeri during the Spring '10 term at Life.

Page1 / 4

KMBSolution12 - Kimberly-Clark Corporation (KMB) Solution...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online