| Investing Lesson 4 |
| Quiz: Analyzing an Income Statement |
For $16,000...
Alcoa, 2001 Income
Statement
Taken from Yahoo! Finance
| Total Revenue | $22,859,000,000 | $23,090,000,000 | $16,447,000,000 |
| Cost Of Revenue | $17,857,000,000 | $17,342,000,000 | $12,536,000,000 |
| Gross Profit | $5,002,000,000 | $5,748,000,000 | $3,911,000,000 |
| Operating Expenses | |||
| Research And Development | $203,000,000 | $194,000,000 | $128,000,000 |
| Selling General And Administrative Expenses | $1,276,000,000 | $1,108,000,000 | $851,000,000 |
| Non Recurring | $566,000,000 | N/A | N/A |
| Other Operating Expenses | $1,253,000,000 | $1,207,000,000 | $888,000,000 |
| Operating Income | $1,704,000,000 | $3,239,000,000 | $2,044,000,000 |
| Total Other Income And Expenses Net | $308,000,000 | N/A | N/A |
| Earnings Before Interest And Taxes | $2,012,000,000 | $3,239,000,000 | $2,044,000,000 |
| Interest Expense | $371,000,000 | $427,000,000 | $195,000,000 |
| Income Before Tax | $1,641,000,000 | $2,812,000,000 | $1,849,000,000 |
| Income Tax Expense | $525,000,000 | $942,000,000 | $553,000,000 |
| Equity Earnings Or Loss Unconsolidated Subsidiary | N/A | N/A | N/A |
| Minority Interest | ($208,000,000) | ($381,000,000) | ($242,000,000) |
| Net Income From Continuing Operations | $908,000,000 | $1,489,000,000 | $1,054,000,000 |
| Nonrecurring Events | |||
| Discontinued Operations | N/A | N/A | N/A |
| Extraordinary Items | N/A | N/A | N/A |
| Effect Of Accounting Changes | N/A | ($5,000,000) | N/A |
| Other Items | N/A | N/A | N/A |
| Net Income | $908,000,000 | $1,484,000,000 | $1,054,000,000 |
| Preferred Stock And Other Adjustments | N/A | N/A | N/A |
| Net Income Applicable To Common Shares | $908,000,000 | $1,484,000,000 | $1,054,000,000 |
| Calculate Alcoa's 2001 net profit margin. | |
| a) 1.56% | b) 4.34% |
| c) 4.08% | d) 3.97% |
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