The Income Statement

The Income Statement - The Income Statement 1 GAAP...

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The Income Statement 1
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GAAP Standards for Revenue Recognition The selling company has completed most of the activities associated with producing and selling the product. The selling company has incurred the costs associated with producing and selling the product or can reasonably measure those costs. The company can measure the amount of revenue it has earned. The company can reasonably be sure that it is going to collect cash from the sale. 2
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Revenue Breakdown Geographic (especially international/domestic) Marketing channel (retail store/Internet) Starbuck’s revenue breakdown Fiscal Year (ending September 30) Net revenues: ($ thousands) 2006 2005 2004 2003 2002 2001 2000 Company-operated retail 6,583,098 5,391,927 4,457,378 3,449,624 2,792,904 2,229,594 1,823,607 Specialty: Licensing 860,676 673,015 565,798 409,551 311,932 240,665 189,411 Foodservice and other 343,168 304,358 271,071 216,347 184,072 178,721 164,596 Total specialty 1,203,844 977,373 836,869 625,898 496,004 419,386 354,007 Total net revenues 7,786,942 6,369,300 5,294,247 4,075,522 3,288,908 2,648,980 2,177,614 3
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Cost of Revenue (cost of goods sold) Cost of the product being sold Cost of goods may include wages as well as the cost of raw materials and direct production expenses (for a manufacturer) Some types of firms (such as airlines, railroads, and utilities) don’t have any cost of goods sold Some companies include “unusual” items in cost of goods sold Revenue – Cost of goods = Gross profit (income) 4
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(income statement) 5 Sales to customers $ 53,324 50,514 47,348 Cost of products sold 15,057 14,010 13,474 Gross profit 38,267 36,504 33,874 Selling, marketing and administrative expenses 17,433 17,211 16,174 Research expense 7,125
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The Income Statement - The Income Statement 1 GAAP...

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