Eastman Kodak

ACC 230 Week 4 Checkpoint Nov 15, 2012 Chapter 3, Page 111, puzzle 3. 16b Eastman Kodak Eastman Kodak appears to be realiseable even though their net income has decreased. They show an increase in sales since from 2002 to 2004, scarce their operating costs also increase by 15. 3 % from 2002 to 2003. The increase in sales was principally through acquisitions and the impact of foreign exchange rates on their holdings. Kodaks largest holding, Digital and Film imagery Systems, experienced a 1% decrease during this period. In a comparative analysis of the years 2003 and 2004, Kodak increased their current assets and decreased heart and soul assets.This reflects the disposal of assets such as equipment, plant and property, and complete discontinuance of reliable operations. This decrease in total assets can be seen as a prudent move in their restructuring process. They also decreased their number of employees in 2004 and cut back on their advertising expense. Kodak has decreased tot al liabilities by 4%. This is the result of decreases in short term and long term borrowings. By salaried off debt, the company is improving its overall financial position. Kodak also sows a positive net profit margin even though they show a loss in 2004.Kodaks other income in 2004 resulted from settlements in favor of Kodak which will not recur in future periods. There is a look across in total shareholders equity, but they have shown an increase in the equity share held by the company. This seems to be the result of $104k more shares in 2004 than in 2003, since the total number of shares outstanding remained continuous in 2003 and 2004. Retained earnings on stock increased in 2004. The company seems to be in good standing from a profitability viewpoint. If they continue with the changes to the companys structure, they should be able to check-out procedure in a profitable income margin.