Analyzing an Income StatementAshford University DiscussionIncome statements are presented in the table below for the Elf Corporation for the years ending December 31, 2010, 2009, and 2008. Write a one-paragraph analysis of Elf Corporations profit performance for the period. Create a common-sized income statement for the three years. What conclusions can you draw from the different parts of the statement? What are the causes and effects of Elfs performance for those three years?Elf Corporation Income Statements for the Years Ending December 31(in millions)201020092008Sales$700$650$550Cost of goods sold 350 325 275Gross profit 350 325 275Operating Expenses: Administrative 100 100 100Advertising and marketing 50 75 75Operating profit$200$150$100Interest expense 70 50 30Earnings before tax$130$100$ 70Tax expense (50%) 65 50 35Net income$ 65$ 50$ 35
