Chapter 12
Using Accounting Information
367
Second Cup Coffee Co.
Statement of Comprehensive Income
For the Periods Ended December 27, 2014 and December 28, 2013
(Expressed in thousands of Canadian dollars, except for per share amounts)
2014
2013
Revenue
Royalties
$12,350
$14,117
Sale of Goods
9,287
5,506
Services and Other Revenue
6,535
7,565
Total Revenue
28,172
27,188
Cost of Services
7,679
4,054
Gross Profit
20,493
23,134
Operating Expenses
Salaries, Benefits, and Incentives
6,496
6,866
Coffee Central Overheads
6,700
5,647
Depreciation Expense
933
749
Amortization Expense
339
502
Lease Expense
2,692
1,775
Loss (Gain) on Disposal of Equipment
34
(197)
Total Expenses
17,194
15,342
Operating Income
3,299
7,792
Other Revenue and Expenses
Restructuring Charges
2,166
883
Provisions for Café Closures
1,630
479
Impairment Charges
29,708
13,552
Loss on Acquisition of Cafes
692
-
Interest and Financing Expense
478
516
Loss Before Income Taxes
(31,375)
(7,638)
Income Tax Recovery
4,343
269
Net Loss
$(27,032)
$(7,369)
Basic and Diluted Loss Per Share
$(2.66)
$(0.74)
_______________
Figure 12.16
As you can see from Figure 12.16, Second Cup’s income statement is also shown in horizontal
form, allowing users to easily compare the financial results of the company over two years. We
can instantly see, for example, that Second Cup has not generated a profit for the past two years.
We can also see that revenues have remained somewhat level while expenses have significantly
increased overall, resulting in a higher net loss for 2014. In addition to these observations, several
more ratios can be calculated to assess profitability.
