1. What type of graph did you create and why? Present your graphs in your memo. 2. Does there appear to be a relationship among the earnings measures? Explain why or why not

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

A five-year earnings summary for Motors, Inc. is presented in the following table. Using this data, construct a single graph of the three earnings measures, and then prepare a memo addressing the following items. What type of graph did you create and why? Present your graphs in your memo. Does there appear to be a relationship among the earnings measures? Explain why or why not. Assess your chart's design in terms of presentation bias. If you feel your chart is free from bias, explain why this is so. Then develop a second chart with the data presented in a manner that might be misleading to a viewer. MOTORS: Earnings Measures, 2008-2012 \table[[Year,2012,2011,2010,2009,200],[\table[[Income],[from],[operations]],5,785,6,450,7,250,6,250,5,975,],[\table[[Net],[income]],4,385,5,300,5,325,4,737,4,529,],[\table[[Net cash],[flow from],[operations]],5,050,8,300,7,700,7,530,5,700,]]

A five-year earnings summary for Motors, Inc. is presented in the following table. Using this data,
construct a single graph of the three earnings measures, and then prepare a memo
addressing the following items.
1. What type of graph did you create and why? Present your graphs in your memo.
2. Does there appear to be a relationship among the earnings measures? Explain why
or why not.
3. Assess your chart's design in terms of presentation bias. If you feel your chart is
free from bias, explain why this is so. Then develop a second chart with the data
presented in a manner that might be misleading to a viewer.
MOTORS: Earnings Measures, 2008-2012
Year
2012
2011
2010
2009
2008
Income
5,785
6,450
7,250
6.250
5,975
from
operations
Net
4,385
5,300
5.325
4,737
4,529
income
Net cash
5,050
8,300
7.700
7.530
5,700
flow from
operations
Transcribed Image Text:A five-year earnings summary for Motors, Inc. is presented in the following table. Using this data, construct a single graph of the three earnings measures, and then prepare a memo addressing the following items. 1. What type of graph did you create and why? Present your graphs in your memo. 2. Does there appear to be a relationship among the earnings measures? Explain why or why not. 3. Assess your chart's design in terms of presentation bias. If you feel your chart is free from bias, explain why this is so. Then develop a second chart with the data presented in a manner that might be misleading to a viewer. MOTORS: Earnings Measures, 2008-2012 Year 2012 2011 2010 2009 2008 Income 5,785 6,450 7,250 6.250 5,975 from operations Net 4,385 5,300 5.325 4,737 4,529 income Net cash 5,050 8,300 7.700 7.530 5,700 flow from operations
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Earnings Quality, Measurement and Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education