Math Problem Statement

Prepare a horizontal analysis of the net income comparing 2012 and 2013. (Round percentages to one decimal place.) Consolidated Statement of Income Increase (Decrease) Year ended December 31 (in millions) 2013 2012 Amount Percent Revenue $ 64,655

Correct: Your answer is correct. $ 62,571

Correct: Your answer is correct. $ 2,084

Correct: Your answer is correct. 3.3

Correct: Your answer is correct. % Costs and Expenses: Programming and Production 19,668

Correct: Your answer is correct. 19,930

Correct: Your answer is correct. -262

Correct: Your answer is correct. -1.3

Correct: Your answer is correct. Other operating and administrative 18,582

Correct: Your answer is correct. 17,834

Correct: Your answer is correct. 748

Correct: Your answer is correct. 4.2

Correct: Your answer is correct. Advertising, Marketing, and Promotion 4,967

Correct: Your answer is correct. 4,832

Correct: Your answer is correct. 135

Correct: Your answer is correct. 2.8

Correct: Your answer is correct. Depreciation 6,252

Correct: Your answer is correct. 6,151

Correct: Your answer is correct. 101

Correct: Your answer is correct. 1.6

Correct: Your answer is correct. Amortization 1,615

Correct: Your answer is correct. 1,649

Correct: Your answer is correct. -34

Correct: Your answer is correct. -2.1

Correct: Your answer is correct. Operating Income 13,571

Correct: Your answer is correct. 12,175

Correct: Your answer is correct. 1,396

Correct: Your answer is correct. 11.5

Correct: Your answer is correct. Other Income (Expense): Interest Expense -2,576

Correct: Your answer is correct. -2,520

Correct: Your answer is correct. -56

Correct: Your answer is correct. 2.2

Correct: Your answer is correct. Investment Income (Loss), Net 574

Correct: Your answer is correct. 220

Correct: Your answer is correct. 354

Correct: Your answer is correct. 161.0

Correct: Your answer is correct. Equity in Net Income (Losses) of Investees, Net -88

Correct: Your answer is correct. 960

Correct: Your answer is correct. 1048

Incorrect: Your answer is incorrect. Other Income (Expense), Net -366

Correct: Your answer is correct. 774

Correct: Your answer is correct. 133

Incorrect: Your answer is incorrect. -5,157

Incorrect: Your answer is incorrect. Income before Income Taxes 11,115

Correct: Your answer is correct. 11,609

Correct: Your answer is correct. 8,207

Incorrect: Your answer is incorrect. Income Tax Expense -3,982

Correct: Your answer is correct. -3,743

Correct: Your answer is correct. -239

Correct: Your answer is correct. 6.4

Correct: Your answer is correct. Net Income 7,133

Correct: Your answer is correct. 7,866

Correct: Your answer is correct. -733

Correct: Your answer is correct. -9.3

Correct: Your answer is correct. Net (Income) Loss Attributable to Noncontrolling Interests and Redeemable Subsidiary Preferred Stock -321

Correct: Your answer is correct. -1,661

Correct: Your answer is correct. -1,340

Incorrect: Your answer is incorrect. -13.4

Incorrect: Your answer is incorrect. Net Income Attributable to Corporation $ 6,812

Solution

Here's a horizontal analysis of the Net Income comparing 2012 and 2013. In this analysis, we will focus on calculating the increase or decrease in the Net Income from 2012 to 2013, including the percentage change.

Horizontal Analysis of Net Income (2012 to 2013)

Net Income

  • 2013: $7,133 million
  • 2012: $7,866 million
  • Change (Amount): 7,1337,866=7337,133 - 7,866 = -733 million
  • Change (Percentage): 7337,866×100=9.3%\frac{-733}{7,866} \times 100 = -9.3\%

This analysis shows that the Net Income decreased by $733 million, or -9.3% from 2012 to 2013.

Would you like further details or clarification on any part of the analysis?

Here are five related questions to explore further:

  1. How is horizontal analysis useful in identifying business trends?
  2. What factors might contribute to a decline in net income?
  3. How does a change in revenue affect net income percentage-wise?
  4. What impact do costs and expenses have on net income?
  5. How does the net income attributable to the corporation differ from total net income?

Tip: When conducting horizontal analysis, focus on both the absolute change (amount) and relative change (percentage) to capture both size and scale of fluctuations.

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Math Problem Analysis

Mathematical Concepts

Horizontal Analysis
Percentage Change
Financial Statement Analysis

Formulas

Change in Amount = Current Year Value - Previous Year Value
Percentage Change = (Change in Amount / Previous Year Value) * 100

Theorems

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Suitable Grade Level

College - Introductory Accounting/Finance