Instructions Indicate the deficiencies in the income statement presented above. Assume that the corporation desires a single-step income statement. CA4-2 (Income Reporting Deficiencies) The following represents a recent income statement for Boeing Company. Sales Costs and expenses Income from operations Other income Interest expense Earnings before income taxes Income taxes Net income ($ in millions) $21,924 20,773 1,151 122 (130) 1,143 (287) $ 856 It includes only five separate numbers (two of which are in billions of dollars), two subtotals, and the net earnings figure. Instructions (a) Indicate the deficiencies in the income statement. (b) What recommendations would you make to Boeing to improve the usefulness of its income statement?
Instructions Indicate the deficiencies in the income statement presented above. Assume that the corporation desires a single-step income statement. CA4-2 (Income Reporting Deficiencies) The following represents a recent income statement for Boeing Company. Sales Costs and expenses Income from operations Other income Interest expense Earnings before income taxes Income taxes Net income ($ in millions) $21,924 20,773 1,151 122 (130) 1,143 (287) $ 856 It includes only five separate numbers (two of which are in billions of dollars), two subtotals, and the net earnings figure. Instructions (a) Indicate the deficiencies in the income statement. (b) What recommendations would you make to Boeing to improve the usefulness of its income statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Instructions
Indicate the deficiencies in the income statement presented above. Assume that the corporation desires a
single-step income statement.
CA4-2 (Income Reporting Deficiencies) The following represents a recent income statement for Boeing
Company.
Sales
Costs and expenses
Income from operations
Other income
Interest expense
Earnings before income taxes
Income taxes
Net income
($ in millions)
$21,924
20,773
1,151
122
(130)
1,143
(287)
$ 856
It includes only five separate numbers (two of which are in billions of dollars), two subtotals, and the net
earnings figure.
Instructions
(a) Indicate the deficiencies in the income statement.
(b) What recommendations would you make to Boeing to improve the usefulness of its income
statement?
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