SEC 10K Week 3 - The Income Statement and Profitability The notes to the financial statements are integral part of the company's financial report.

Use the following link to answer the following questions.

https://www.sec.gov/Archives/edgar/data/789019/000119312516662209/d187868d10k.htm#toc

1. Note 1 includes accounting information. What is the fiscal year for your SEC 10-K Company? This may be June 30 each year, or it may be the Sunday closest to the last day of January, or some other description.

2. Inventory: How is Inventory described for your SEC 10-K company? LIFO, FIFO, and/or average cost?

3. Income Statement: Is it a single-step or multi-step income statement? A multi-step statement (also called a classified income statement) reports levels of income (gross profit, operating income, net income). Define gross profit, operating income, and net income. Why are the levels of income important to financial statement users? A single-step statement reports revenues minus expenses and doesn’t highlight gross profit. Gross profit must be calculated by the user.

4. Summarize management’s discussion of the company’s performance in the MD&A section of the annual report.

5. Calculate the Gross Profit and Gross Profit Percentage (Gross Profit/Sales) for this year and last year, creating a small table