Common- Sized Income Statement
Dorelle Mackey
St Thomas University Online, St. Thomas University, – Miami, Florida
ACC-530-AP1: Essentials of Accounting
Dr. M. Lubell
March 17, 2022
Module 1 Discussion – Common-Sized Income Statement
Instructions: Locate the common-sized income statements for a company of your choice
and assess the company’s performance from the information presented in these
statements. Include a copy of the common-sized income statements in your post.
Income for the period was $16,432 million in 2019, compared with $23,906 million in
2018. After current cost of supplies adjustment, total segment earnings were $15,827
million in 2019, compared with $24,364 million in 2018. Income for the period was
$23,906 million in 2018, compared with $13,435 million in 2017. After current cost of
supplies adjustment, total segment earnings were basically doubled as compared to
2017. Corporate earnings in 2019 were a loss of $3,273 million, compared with a loss of
$1,479 million in 2018. Corporate earnings in 2018 were a loss of $1,479 million,
compared with a loss of $2,416 million in 2017. The purchase price of volumes sold in
the period is based on the current cost of supplies during the same period, rather than
on the historic cost calculated on a first-in, first-out (FIFO) basis. Therefore, when oil
prices are decreasing, CCS earnings are likely to be higher than earnings calculated on
a FIFO basis and, when prices are increasing, CCS earnings are likely to be lower than
earnings calculated on a FIFO basis.
References
Shells. (2019). How to prepare a common size income statement analysis. Retrieved
from https://reports.shell.com/annual-report/2019/consolidated-financialstatements.php.