Question

make an analysis of the consolidated statements of operations. are the sales increasing or decreasing? is the net income increasing or decreasing? are the basic earnings per share increasing or decreasing? (also connect with the consolidated statements of shareholder's equity). consider the reasonableness of your answer.

CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 24,. September 26, 2015 September 27, 2016 2014 Net sales 215,639 233,715 140,089 93,626 182,795 Cost of sales 131,376 112,258 70,537 Gross margin 84,263 Operating expenses: Research and development 10,045 14,194 24,239 8,067 14,329 6,041 Selling, general and administrative Total operating expenses 11,993 18,034 22,396 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes 60,024 71,230 1,285 72,515 52,503 980 1,348 61,372 53,483 13,973 19,121 15,685 Net income 45,687 53,394 $ 39,510 Earnings per share: Basic 6.49 9.28 $ 8.35 6.45 9.22 8.31 Diluted Shares used in computing earnings per share: 6.085,572 5,753,421 5,793,069 5,470,820 5,500,281 Basic 6.122,663 Diluted 1.82 1.98 2.18 $ Cash dividends declared per share See accompanying Notes to Consolidated Financial Statements. SS

Answer 1

Net sales : The Net sales have increased from 2014 to 2015 i.e. from 182,795 to 233 ,715. However the year on year growth from 2015 to 2016 has reduced. Hence, it cannot be concluded that there is a certain trend for the sales.

Net Income : The Net income has increased from 2014 to 2015 i.e. from 39510 to 53394. However the year on year growth from 2015 to 2016 has reduced. This is a result of the variations in sales.

EPS: The Earnings per share has gone up from 2014 to 2015 i.e. from 6.49 to 9.28. However ,EPS also has reduced from 9.28 to 8.35 in 2016.