Locate the income statement for Lockheed Martin most recent 10-K, and respond to the following questions. Sometimes the income statement is called Consolidated Statements of Earnings, Consolidated Statements of Operations, or something similar.

By the way, you should ignore the Statement of Comprehensive Income because that's a financial statement covered in more advanced accounting classes. We won't be doing anything with that statement in our introductory accounting class.

Category: Revenue and Net Income

Identify the following amounts for the two most recent years:

• Net Sales (or Total Sales if your company has more than one source of revenue) Some companies use the term Revenue instead of Sales.
• Cost of Goods Sold (aka Cost of Products, Cost of Sales, Cost of Services, etc.)
• Gross Profit (aka Gross Margin)

Category:  Analysis

Calculate the following ratios (show and label your calculations) for the two most recent years and comment on the results of your ratio analysis.

• Gross profit margin = Gross profit ÷ Net sales × 100
• Net profit margin = Net income ÷ Net sales × 100

Note that Net Income should take into account any non-controlling interests if your company lists this item on the income statement. In other words, Net Income will be the last number listed immediately above where the Earnings per Share section starts, and it is typically double-underlined to indicate that it's the final number.

Please include the name of your company in the subject line and the link to your company's 10-K in your posting.

Example: Johnson & Johnson (J&J)

Use this example as a guide for answering these discussion questions for your company. For this example, please refer to the J&J's Consolidated Statements of Earnings on page 21 of its 2014 10-K.

And here are J&J's ratios: