The Home Depot, Incorporated Selling, general, and Operating income 15,843 Analysis Case 4-2 Interest expense (1,201) Income tax expense Real World Income statement format; restructuring costs; earnings per share; comprehensive income; statement of cash flows; Ralph Lauren Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of premium lifestyle products, including mens, womens and childrens apparel. Below are selected financial statements taken from a recent 10-K filing. RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (3,336.3) Interest expense Diluted Consolidated Statement of Earnings Year ended February 2, 2020 ($ in millions) 72,653 Cost of goods sold 19,740 administrative expenses share data) $ 6,159.8 (2,506.5) 3,653.3 Net revenues Cost of goods sold Gross profit Selling, general, and (3,237.5) administrative expenses Impairment of assets Restructuring and other charges Total other operating expenses, net 34.4 Operating income (7.4) Interest income Other income (expense), net Income before income taxes $ 384.3 Income tax benefit (provision) Net income RALPH LAUREN CORPORATION Net income per common share: Fiscal Year Ended March 28, 2020 (millions, except per CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended HOMEWORK CH 4 INCOME STATEMENT Analysis Case 4-1 Income statement information The following is the income statement of The Home Depot, Incorporated. Net sales $ 110,225 Gross profit 37,572 Depreciation and amortization 1,989 Interest and investment income 73 Income before income taxes 14,715 3,473 Net income $ 11,242 Required: 1. Is this income statement presented in the single-step or multiple-step format? 2. What is the companys approximate income tax rate? Note: Round your final answer to 1 decimal place. 3. What is the percentage of net income relative to net sales? Note: Round your final answer to 1 decimal place. SHOW YOUR COMPUTATIONS (67.2) (17.6) 326.4 Basic $ 5.07 $ 4.98 (31.6) 317.0 57.9 $ 384.3 Net income Other comprehensive income (loss), net of tax: (11.9) (2.2) Net (0.7) (14.8) Required: Use the information in the financial statements to answer the following questions. 1. Does the company use the single-step or multiple-step format to present its income statements? 2. Does the company report restructuring costs (yes/no)? If so, how much? Note: Enter your answer in millions. Round your answer to 1 decimal place. 3. Does the company report asset impairments (yes/no)? If so, how much? Note: Enter your answer in millions. Round your answer to 1 decimal place. 4. What amount does the company report for nonoperating income? Note: Enter your answer in millions. Round your answer to 1 decimal place. 5. Does the company choose to report comprehensive income in two consecutive statements or a combined statement? 7. What is the amount of comprehensive income? Note: Enter your answer in millions. Round your answer to 1 decimal place. SHOW YOUR COMPUTATIONS March 28,.

1. The Home Depot, Incorporated
Selling, general, and
Operating income
15,843
Analysis Case 4-2
Interest expense
(1,201)
Income tax expense
Real World Income statement format; restructuring costs; earnings per
share; comprehensive income; statement of cash flows; Ralph Lauren
Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of
premium
lifestyle products, including mens, womens and childrens apparel. Below are selected financial
statements taken from a recent 10-K filing.
RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(3,336.3)
Interest expense
Diluted
Consolidated Statement of Earnings
Year ended February 2, 2020
($ in millions)
72,653
Cost of goods sold
19,740
administrative expenses
share data)
$ 6,159.8
(2,506.5)
3,653.3
Net revenues
Cost of goods sold
Gross profit
Selling, general, and

2. (3,237.5)
administrative expenses
Impairment of assets
Restructuring and other charges
Total other operating expenses, net
34.4
Operating income
(7.4)
Interest income
Other income (expense), net
Income before income taxes
$ 384.3
Income tax benefit (provision)
Net income
RALPH LAUREN CORPORATION
Net income per common share:
Fiscal Year Ended
March 28, 2020
(millions, except per
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Fiscal Year Ended
HOMEWORK CH 4 INCOME STATEMENT Analysis Case 4-1 Income statement
information
The following is the income statement of The Home Depot, Incorporated.
Net sales $ 110,225 Gross profit 37,572 Depreciation and amortization 1,989
Interest and investment income 73 Income before income taxes 14,715 3,473 Net income $
11,242
Required:
1. Is this income statement presented in the single-step or multiple-step format? 2. What is the
companys approximate income tax rate?
Note: Round your final answer to 1 decimal place.
3. What is the percentage of net income relative to net sales? Note: Round your final answer to 1
decimal place.
SHOW YOUR COMPUTATIONS
(67.2)
(17.6) 326.4

3. Basic $ 5.07 $ 4.98
(31.6)
317.0
57.9
$ 384.3
Net income
Other comprehensive income (loss), net of tax:
(11.9) (2.2) Net (0.7)
(14.8)
Required:
Use the information in the financial statements to answer the following questions. 1. Does the
company use the single-step or multiple-step format to present its income statements? 2. Does
the company report restructuring costs (yes/no)? If so, how much?
Note: Enter your answer in millions. Round your answer to 1 decimal place. 3.
Does the company report asset impairments (yes/no)? If so, how much?
Note: Enter your answer in millions. Round your answer to 1 decimal place. 4.
What amount does the company report for nonoperating income?
Note: Enter your answer in millions. Round your answer to 1 decimal place. 5. Does the
company choose to report comprehensive income in two consecutive statements or a combined
statement?
7. What is the amount of comprehensive income?
Note: Enter your answer in millions. Round your answer to 1 decimal place.
SHOW YOUR COMPUTATIONS
March 28, 2020
Foreign currency translation gains (losses)
Total comprehensive income
$ 369.5
Other comprehensive income (loss), net of tax
Does the company use the single-step or multiple-step format to present its income statements?
2. Does the company report restructuring costs (yes/no)? If so, how much?
3. Does the company report asset impairments (yes/no)? If so, how much?
4. What amount does the company report for nonoperating income?
7. What is the amount of comprehensive income?
5. Does the company choose to report comprehensive income in two consecutive
statements or a combined statement?

4. Net gains (losses) on cash flow hedges
(millions)
gains (losses) on defined benefit plans
Homework CH 04 - Students
Analysis Case 4-3 Income statement presentatio
Each of the following situations occurred during 2024 for one of your audit clients: 1.
An inventory write-down due to obsolescence.
2. Discovery that depreciation expenses were omitted by accident from 2023s income
statement.
3. The useful lives of all machinery were changed from eight to five years.
4. The depreciation method used for all equipment was changed from the declining-balance to
the
straight-line method.
5. Restructuring costs were incurred.
6. The Stridewell Company, a manufacturer of shoes, sold all of its retail outlets. It will continue
to
manufacture and sell its shoes to other retailers. A loss was incurred in the disposition of the
retail stores. The retail stores are considered a component of the entity. 7. The inventory costing
method was changed from FIFO to average cost.
Required:
n
1. For each situation, select the appropriate reporting treatment from the list below (consider
each event to be material):
a. As an unusual gain or loss
b. As a prior period adjustment
c. As a change in accounting principle
d. As a discontinued operation
e. As a change in accounting estimate
f. As a change in accounting estimate achieved by a change in accounting principle 2.
Indicate whether each situation would be included in the income statement in continuing
operations (CO) or below continuing operations (BC), or if it would appear as an adjustment to
retained earnings (RE).
Situation Treatment (a-f) Financial Statement Presentation
1.
2.

5. 3.
4.
5.
6.
7.
The Home Depot, Incorporated
Selling, general, and
Operating income
15,843
Analysis Case 4-2
Interest expense
(1,201)
Income tax expense
Real World Income statement format; restructuring costs; earnings per
share; comprehensive income; statement of cash flows; Ralph Lauren
Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of
premium
lifestyle products, including mens, womens and childrens apparel. Below are selected financial
statements taken from a recent 10-K filing.
RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(3,336.3)
Interest expense
Diluted
Consolidated Statement of Earnings
Year ended February 2, 2020
($ in millions)
72,653
Cost of goods sold
19,740
administrative expenses
share data)
$ 6,159.8
(2,506.5)
3,653.3

6. Net revenues
Cost of goods sold
Gross profit
Selling, general, and
(3,237.5)
administrative expenses
Impairment of assets
Restructuring and other charges
Total other operating expenses, net
34.4
Operating income
(7.4)
Interest income
Other income (expense), net
Income before income taxes
$ 384.3
Income tax benefit (provision)
Net income
RALPH LAUREN CORPORATION
Net income per common share:
Fiscal Year Ended
March 28, 2020
(millions, except per
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Fiscal Year Ended
HOMEWORK CH 4 INCOME STATEMENT Analysis Case 4-1 Income statement
information
The following is the income statement of The Home Depot, Incorporated.
Net sales $ 110,225 Gross profit 37,572 Depreciation and amortization 1,989
Interest and investment income 73 Income before income taxes 14,715 3,473 Net income $
11,242
Required:
1. Is this income statement presented in the single-step or multiple-step format? 2. What is the
companys approximate income tax rate?
Note: Round your final answer to 1 decimal place.
3. What is the percentage of net income relative to net sales? Note: Round your final answer to 1

7. decimal place.
SHOW YOUR COMPUTATIONS
(67.2)
(17.6) 326.4
Basic $ 5.07 $ 4.98
(31.6)
317.0
57.9
$ 384.3
Net income
Other comprehensive income (loss), net of tax:
(11.9) (2.2) Net (0.7)
(14.8)
Required:
Use the information in the financial statements to answer the following questions. 1. Does the
company use the single-step or multiple-step format to present its income statements? 2. Does
the company report restructuring costs (yes/no)? If so, how much?
Note: Enter your answer in millions. Round your answer to 1 decimal place. 3.
Does the company report asset impairments (yes/no)? If so, how much?
Note: Enter your answer in millions. Round your answer to 1 decimal place. 4.
What amount does the company report for nonoperating income?
Note: Enter your answer in millions. Round your answer to 1 decimal place. 5. Does the
company choose to report comprehensive income in two consecutive statements or a combined
statement?
7. What is the amount of comprehensive income?
Note: Enter your answer in millions. Round your answer to 1 decimal place.
SHOW YOUR COMPUTATIONS
March 28, 2020
Foreign currency translation gains (losses)
Total comprehensive income
$ 369.5
Other comprehensive income (loss), net of tax
Does the company use the single-step or multiple-step format to present its income statements?
2. Does the company report restructuring costs (yes/no)? If so, how much?
3. Does the company report asset impairments (yes/no)? If so, how much?

8. 4. What amount does the company report for nonoperating income?
7. What is the amount of comprehensive income?
5. Does the company choose to report comprehensive income in two consecutive
statements or a combined statement?
Net gains (losses) on cash flow hedges
(millions)
gains (losses) on defined benefit plans
Homework CH 04 - Students
Analysis Case 4-3 Income statement presentatio
Each of the following situations occurred during 2024 for one of your audit clients: 1.
An inventory write-down due to obsolescence.
2. Discovery that depreciation expenses were omitted by accident from 2023s income
statement.
3. The useful lives of all machinery were changed from eight to five years.
4. The depreciation method used for all equipment was changed from the declining-balance to
the
straight-line method.
5. Restructuring costs were incurred.
6. The Stridewell Company, a manufacturer of shoes, sold all of its retail outlets. It will continue
to
manufacture and sell its shoes to other retailers. A loss was incurred in the disposition of the
retail stores. The retail stores are considered a component of the entity. 7. The inventory costing
method was changed from FIFO to average cost.
Required:
n
1. For each situation, select the appropriate reporting treatment from the list below (consider
each event to be material):
a. As an unusual gain or loss
b. As a prior period adjustment
c. As a change in accounting principle
d. As a discontinued operation
e. As a change in accounting estimate
f. As a change in accounting estimate achieved by a change in accounting principle 2.
Indicate whether each situation would be included in the income statement in continuing
operations (CO) or below continuing operations (BC), or if it would appear as an adjustment to

9. retained earnings (RE).
Situation Treatment (a-f) Financial Statement Presentation
1.
2.
3.
4.
5.
6.
7.