Financial Statement Analysis

Assignment 1: Differences between Contribution and Traditional Income Statements; Company Segments

General Questions:

Respond to the following questions thoroughly, in 150-300 words for each question.  Use your textbook as your first and major reference.

  1. What is the difference between a contribution income statement and a traditional income statement?  Under what circumstances would a firm use each?
  2. What is a company segment?  Why would a firm want to divide itself into operating segments?  Why would a firm want to measure profits by segment?  How would common costs be allocated to each of a company’s segments?

Deliverables:

  1. Answer the General Questions and post your responses to the Discussion Area by Saturday, May 13, 2017. Be sure to explain your answers thoroughly, use specific examples, and cite your sources.
  2. Participate in the discussions, responding to at least two other responses.
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