To answer the questions, you will need to download the Benetton Group’s 2004 Annual Report at
Investor Relations - Benetton Group. You do not need to print this document to answer the questions.
1. How do the formats of the income statements shown on pages 33 and 50 of Benetton’s annual report differ from one another (disregard everything beneath the line titled “income from operations”)? Which expenses shown on page 50 appear to have been reclassified as variable selling costs on page 33?