A financial team has been properly selected
and charged to proceed with its analysis of EEV’s financial statements.
In the course of its evaluation, it will be assessing the firm’s
operating performance, benchmarking its competitors, and looking at the
industry using financial ratios as its source of measurement.
The income statement measures the firm’s profitability over a period
of time: 1 month, 1 quarter, or 1 year. The statement focuses on the
operations of the firm and explains what was produced and sold. In
essence, it summarizes revenues generated and the results.
Tony understands that managing profitability involves overseeing 3
interrelated factors: volume, cost, and price. He has given you the job
of conducting an in-depth analysis of EEV’s operating performance. You
will analyze the following factors:
- Sales volume, cost, and price of each specific product
- Each product’s contribution to sales in terms of profit
- The relationship between sales and supportive employment
has made it clear that he expects you to initiate a constructive
discussion by describing your findings both in narrative form and
through an organized numeric presentation.
Click here to view the EEV income statement, and then complete the following in your paper:
- Review the sales volume, cost, and price of each specific product.
- Review each product’s contribution to sales in terms of profit.
- Describe the relationship between sales and supportive employment.
Provide an Excel spreadsheet that depicts your findings along with your analysis.