Using the income statement provided on page 47 please answer the follwoing quest

Question

Using the income statement provided on page 47 please answer the follwoing questions

This is the annual report below

http://investors.cvshealth.com/~/media/Files/C/CVS-IR-v3/reports/annual-report-2016.pdf

1) Profitability - How did the overall profitability of the corporation change in the current year?

2) What items in the income statement explain the change in income from continuing operations as a percentage of sales?

2) Generally accepted accounting principles require amounts related to discontinued operations and extraordinary items to be shown, net of taxes, at the bottom of the income statement. If any of these items are present, describe the nature and amount.

Explanation / Answer

1) The overall profitability of the corporations change is mainly due to the considerable increase in the value of net revenues during the year and the corresponding factors which have contributed to the same.

2) Items such as Gross Profit, Net Revenues,Operating Profit, etc, explains the change in income from continuing operations as a percentage of sales as all these items mentioned are in connection with sales.

3) No considerable items related to discontinued operations and extraordinary items were found except for a loss of (1) from discontinued operation net of taxes.

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