Case 1

Understanding Financial Statements

By Robert Kimble

ACC 501

Dr. Tara Murphy

August 29, 2011

In this paper, we are going to take a look at three companies and compare their 2010 income statement in regards to total revenues, operating income and net income. We are also going to review some financial terms and concepts that can affect how the data in their income statement is presented. After looking at some terms and how they are used, we will make some comparisons and reach some conclusions about those same companies. Lastly, we will look at how we compared and contrasted information in the income statement. So let’s get this paper started by taking a look into all three companies and we will start with Apple Incorporated.
According to Apple’s company perspective, “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.” Now let’s look at Swatch, according to Swatch it, “is the world's leading supplier of watch movements and finished watches, accounting for as much as 25 percent of total world production, while capturing more than ten percent of all watch sales. The Swatch Group is more than its flagship Swatch brand--which alone accounts for half of the company's profits, and, in the late 1990s has given its name to a 15-store chain of retail Swatch Megastores.” Now let’s look at Nikon according to Nikon it, “is involved in a broad spectrum of businesses centered around specializations in imaging products, precision equipment, and instruments. Nikon’s efforts to provide the kind of products and technologies that will exceed its