Analyzing an Income Statement, business and finance homework help

Income statements are presented in the table below for the Elf Corporation for the years ending December 31, 2010, 2009, and 2008. Write a one-paragraph analysis of Elf Corporation’s profit performance for the period. Create a common-sized income statement for the three years. What conclusions can you draw from the different parts of the statement? What are the causes and effects of Elf’s performance for those three years?

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Elf Corporation Income Statements for the Years Ending December 31

(in millions)201020092008
Cost of goods sold350325275
Gross profit 350 325 275
Operating Expenses:
Administrative 100 100 100
Advertising and marketing507575
Operating profit$200$150$100
Interest expense705030
Earnings before tax$130$100$ 70
Tax expense (50%)65 50 35
Net income$ 65$50$ 35
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