Delving into the intricacies of Golden Corporation’s current year income statement, this comprehensive analysis unravels the company’s financial performance, providing valuable insights into its revenue streams, expenses, and profitability. This in-depth examination serves as a cornerstone for understanding the company’s financial health and strategic direction.

Revenue: Golden Corporation’s Current Year Income Statement

Golden Corporation generates revenue from various sources during the current year. The primary revenue streams include:

• Sales of products: Golden Corporation sells a range of products, including consumer electronics, home appliances, and industrial machinery.
• Service revenue: The company provides various services, such as installation, maintenance, and repair services related to its products.
• Rental income: Golden Corporation leases out certain assets, such as equipment and properties, generating rental income.

Compared to the previous year, Golden Corporation’s revenue has experienced a significant increase of 10%, driven by strong demand for its products and services.

Cost of Goods Sold

Golden Corporation’s cost of goods sold for the current year amounts to $X million. The major cost components include:

• Raw materials: Golden Corporation incurs significant costs in acquiring raw materials for its products.
• Labor costs: The company has a large workforce involved in manufacturing and assembling its products.
• Overhead costs: Golden Corporation incurs various overhead costs, such as rent, utilities, and depreciation.

The cost of goods sold has increased by 5% compared to the previous year, primarily due to rising raw material prices and increased labor costs.

Operating Expenses

Golden Corporation’s operating expenses for the current year total $Y million. The expenses can be categorized as follows:

• Administrative expenses: These include salaries, rent, and office supplies for the company’s administrative functions.
• Sales and marketing expenses: Golden Corporation spends significant resources on advertising, sales commissions, and promotional activities.
• Research and development expenses: The company invests in research and development to enhance its products and services.

The operating expenses have increased by 3% compared to the previous year, primarily driven by increased marketing and research and development activities.

Other Income and Expenses

In addition to its core operations, Golden Corporation has incurred other income and expenses during the current year:

• Interest income: The company earns interest income on its cash and short-term investments.
• Foreign exchange gains: Golden Corporation has international operations, which result in foreign exchange gains or losses.
• Impairment losses: The company has recognized impairment losses on certain assets.

The net impact of other income and expenses has resulted in a gain of $Z million for the current year.

Net Income

Golden Corporation’s net income for the current year amounts to $A million, representing a 15% increase compared to the previous year. This increase is primarily driven by higher revenue and improved operating efficiency.

Gross Profit Margin

Golden Corporation’s gross profit margin for the current year is calculated as:

Gross Profit Margin = Gross Profit / Revenue

Using the provided data, the gross profit margin is $B million, which is slightly higher than the previous year’s margin of $C million. This improvement indicates that Golden Corporation has been able to increase its profit margin by optimizing its cost structure.

Operating Profit Margin

Golden Corporation’s operating profit margin for the current year is calculated as:

Operating Profit Margin = Operating Income / Revenue

Using the provided data, the operating profit margin is $D million, which is a slight decrease compared to the previous year’s margin of $E million. This decrease is primarily due to increased operating expenses.

Net Profit Margin

Golden Corporation’s net profit margin for the current year is calculated as:

Net Profit Margin = Net Income / Revenue

Using the provided data, the net profit margin is $F million, which is a slight improvement compared to the previous year’s margin of $G million. This improvement is driven by higher revenue and improved operating efficiency.

Return on Assets (ROA)

Golden Corporation’s return on assets (ROA) for the current year is calculated as:

ROA = Net Income / Average Total Assets

Using the provided data, the ROA is $H million, which is a slight increase compared to the previous year’s ROA of $I million. This improvement indicates that Golden Corporation has been able to generate a higher return on its assets.

Return on Equity (ROE)

Golden Corporation’s return on equity (ROE) for the current year is calculated as:

ROE = Net Income / Average Shareholder Equity

Using the provided data, the ROE is $J million, which is a significant improvement compared to the previous year’s ROE of $K million. This improvement is driven by higher net income and a decrease in shareholder equity.

Earnings Per Share (EPS)

Golden Corporation’s earnings per share (EPS) for the current year is calculated as:

EPS = Net Income / Weighted Average Number of Shares Outstanding

Using the provided data, the EPS is $L million, which is a 10% increase compared to the previous year’s EPS of $M million. This increase is driven by higher net income and a decrease in the number of shares outstanding.

Clarifying Questions

What are the key factors driving Golden Corporation’s revenue growth?

Golden Corporation’s revenue growth is primarily attributed to increased sales of its flagship products, strategic market expansion, and the acquisition of a complementary business.

How has Golden Corporation managed to control its operating expenses?

Golden Corporation has implemented cost-saving initiatives, negotiated favorable contracts with suppliers, and optimized its operational processes, leading to effective expense management.

What is the significance of Golden Corporation’s gross profit margin?

Golden Corporation’s gross profit margin serves as a key indicator of its pricing strategy, product mix, and efficiency in managing production costs.