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lunes, 8 de diciembre de 2014

Income Statement 20!3

The next important statement, which is critical too, is the income statement.
The income statement shows the company’s revenues and expenses during a 
particular period. The main purpose of the income statement is to show 
managers and shareholders whether the company made or lost money during the 
period being reported. In this case the period that is going to be analyzed is 2013.
In 2013, Deoleo S.A. had a net income of 42,104. This income is quite different 
to the one of 2012, which was -235,438. That is, in one year Deoleo S.A. has 
increased its net income 277,542. As it is possible to see in the table below, this 
increase in net income is due to some decreases. 
In 2012 this company´s wage expenses amounted 27,269, and in 2013 they 
amounted 16,756. In addition to these operating expenses the amortization, 
depreciation and impairment costs have decreased from 2012 to 2013. In 2012 
these costs amounted 19,679, whereas in 2013 they amounted 22. This together 
with other increases such as the sales, which in 2012 amounted 452.990 and in 
2013 they were 553.660, and the financial revenues, which in 2013 were 54,636 
and in 2012 28,085, sums up the increase of the net income from one year to 
another.


2012
2013
Operating profit (loss)
(Net sales, Wage expenses, Amortization and other expenses)
(4,368)
28,480
Financial Result
(178,812)
17,175
EBIT
(183,180)
45,655
Tax income
(52,258)
(3,551)
Net Income
(235,438)
42,104

It is possible to see that the numbers in 2012 are quite negative, whereas in 2013 
they are positive. This is actually reflected in the net income of Deoleo S.A. That 
is, ths company has worked hard in order to increase its net income, that is, the 
profit of this period. It has increased its sales in spite of the fact that the wages 
have decreased. It is not possible to know if Deoleo S.A. has fired employees or 
if it has just decrease the wages. But whatever it is, it is quite difficult to increase 
the production with less workers or with less motivation (if money can be seen as 
an incentive).

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