Crash Course in Accounting and Financial Statement Analysis, Second Edition

Income Statement

The income statement represents a company’s operating performance over a specific period of time (a fiscal year) through a summary of the company’s revenues and expenses, showing net earnings (profit) or loss (Exhibit 4.4).

Exhibit 4.4. Income Statement is a Summary of a Company’s Revenues and Expenses Over an Entire Fiscal Year

In millions, except per share amounts		fiscal year ended Dec. 31, 2005 (52 weeks)	fiscal year ended Jan. 1, 2005 (52 weeks)	fiscal year ended Jan. 3, 2004 (53 weeks)
Net sales
Cost of goods sold, buying and warehousing costs		$ 37,006.2	$ 30,594.3	$ 26,588.0
	Gross margin	27,105.0	22,563.1	19,725.0
Selling, general and administrative expenses		9,901.2	8,031.2	6,863.0
Depreciation and amortization		7,292.6	6,079.7	5,097.7
	Total operating expenses	589.1	496.8	341.7
Operating profit		7,881.7	6,576.5	5,439.4
Interest expense, net		2,019.5	1,454.7	1,423.6
Earnings before income tax provision		110.5	58.3	48.1
Income tax provision		1,909.0	1,396.4	1,375.5
Net earnings		684.3	477.6	528.2
Preference dividends, net of income tax benefit		1,224.7	918.8	847.3
Net earnings available to common shareholders		14.1	14.2	14.6
		$1,210.6	$904.6	$832.7
Basic earnings per common share:
	Net earnings	$1.49	$1.13	$1.06
	Weighted average common shares outstanding	811.4	797.2	788.8
Diluted earnings per common share:		$1.45	$1.10	$1.03
	Net earnings	841.6	830.8	815.4
	Weighted average common shares outstanding
		$0.1450	$0.1325	$0.1150
Dividends declared per common share

Source: Used with permission of CVS Corporation. 2005 Annual Report, 2005 10-K, ...