Question

a) What are some your companies major expenses? List five and the percentage of sales they each represent.

b) Did these expenses go up or down during the two years observed?

The link below is the 10k report for eTrade Financial Corporation.

https://www.sec.gov/Archives/edgar/data/1015780/000101578017000030/etfc-20161231x10k.htm#sC725D2ED94A85BF0912C52C3FE195E9B

Answer 1

a.

	2016		2015
	Amount	% to Revenue	Amount	% to Revenue
Total Revenue	2026		1564
Major expenses:
Compensation and benefits	501	24.73%	466	29.80%
Interest Expense	85	4.20%	194	12.40%
Advertising and marketing	131	6.47%	124	7.93%
Clearing and servicing	105	5.18%	95	6.07%
Professional services	97	4.79%	103	6.59%
Occupancy and equipment	98	4.84%	88	5.63%
Communications	87	4.29%	90	5.75%
Depreciation and amortization	79	3.90%	81	5.18%

b.

All expenses have come down in 2016 when compared with 2015, as can be seen from the table above.