Analyzing an Income Statement
The review and analysis of the Eastman Kodak Company’s consolidated statement of financial position, otherwise known as the income statement, revealed several changes over the three year span as well as several areas of concern. The information contained in the report is stated in millions, with the exception of the share data. Upon review of the company’s assets, it is apparent that there have been significant changes between 2003 and 2004. Although there was an $80 million dollar increase in inventories and a $217 million dollar increase in net receivables, there were significant decreases in other current assets and the assets from discontinued operations, which took a sizeable bite out of the overall current assets. While they did increase their property, plant and equipment assets, they still suffered a decrease in total assets of $109,000. The company also experience significant changes in the liability and stockholder’s equity categories as well. There was a large increase in accounts payable and a decrease of $477,000 in short term borrowing. They reduced the total liabilities by $675,000. The shareholders equity increased by $566,000 (Kodak, 2013). Overall, there is some cause for concern. The company has seen some very profitable years. This time frame shows a sizeable increase in accounts payable as well as total liabilities. Combined with a decrease in net income, this could spell trouble for the financial stability of the company. The saying “Hindsight is 20/20” applies here, as it appears that this is when the company began to circle the drain.
Kodak. (2013). Eastman Kodak Company 2004 Annual Report and 2005 Proxy Statement. Retrieved from http://www.kodak.com/US/en/corp/annualReport04/cover.shtml
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