Homework Answers
We have to answer the multiple choice questions and compute the relative size of Sales revenue (total) and of revenue from service, outsourcing and rentals.
(a) The correct option is No.4 - Sales, service and finance revenues are recognized when earned, regardless of when cash is collected.
(b) Computation of relative size of sales revenue and of revenue from outsourcing, maintenance, and rentals
| Revenue in $ millions | As % of Total Revenue | |||||
| 2007 | 2006 | 2005 | 2007 | 2006 | 2005 | |
| Sales | $ 8,192 | $ 7,464 | $ 7,400 | 47.6% | 47.0% | 47.1% |
| Outsourcing, maintenance and rentals | $ 8,214 | $ 7,591 | $ 7,426 | 47.7% | 47.8% | 47.3% |
| Total Revenues | $ 17,228 | $ 15,895 | $ 15,701 | |||
(c) The correct option is No.1 - Companies are not required to
separately disclose revenue and expense items unless they are
deemed to be material. Such aggregation may reduce the usefulness
of income statements
.
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Year ended December 31 (in millions) 2007 2006 2005 Revenues Sales 58.192 $7.464 $7.400 8.214 7.591...
Analyzing and Interpreting Income Components and Disclosures The income statement for Xerox Corporation follows. Year ended...
Analyzing and Interpreting Income Components and Disclosures The income statement for Xerox Corporation follows. Year ended December 31 (in millions) 2008 2007 2006 Revenues Sales $8,325 $8,192 $7,464 Service, outsourcing and rentals 8,485 8,214 7,591 Finance income 798 822 840 Total Revenues 17,608 17,228 15,895 Cost and expenses Cost of sales 5,519 5,254 4,803 Cost of service, outsourcing and rentals 4,929 4,707 4,328 Equipment financing interest 305 316 305 Research, development, and engeineering expenses 884 912 922 Selling, administrative and...
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Unadjusted Financial Statements income Statement For the Year Ended December 31, 2017 Service revenue $70,600.00 Wages...
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receivables outstanding for 2005 & 2006. What might explain the change? Problem 1: For 2007, Stadler...
receivables outstanding for 2005 & 2006. What might explain the change? Problem 1: For 2007, Stadler Corporation has cash sales of $385 million, credit sales of $649 million, and Income Before Taxes of $213 million. At the end of 2007, the balances of gross accounts receivable and allowance for doubtful accounts were $295 million and $15 million respectively. No bad debt expense has been recorded this year. a. Assuming Stadler uses the receivables approach to determine the amount of bad...
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Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Assets 2006 2005...
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Income Statement Year Ended December 31 (In millions) 2005 2004 2003 Net sales Products $ 31,518 $ 30,202 $ 27,290 Service 5,695 5,324 4,534 37,213 35,526 31,824 Cost of sales Products 27,932 27,637 25,306 Service 5,073 4,765 4,099 Unallocated coporate costs 803 914 443 33,808 33,316 29,848 3,405 2,210 1,976 Other income (expenses), net (449) (121) 43 Operating profit 2,956 2,089 2,019 Interest expense 370 425 487 Earnings before taxes 2,586 1,664 1,532 Income tax expense 761 368 479 Net...
Analyzing and Interpreting Income Components and Disclosures The income statement for Xerox Corporation follows. Year ended December 31 (in millions) 2008 2007 2006 Revenues Sales $8,325 $8,192 $7,464 Service, outsourcing and rentals 8,485 8,214 7,591 Finance income 798 822 840 Total Revenues 17,608 17,228 15,895 Cost and expenses Cost of sales 5,519 5,254 4,803 Cost of service, outsourcing and rentals 4,929 4,707 4,328 Equipment financing interest 305 316 305 Research, development, and engeineering expenses 884 912 922 Selling, administrative and...
Corporation INCOME STATEMENT For the Year Ended December 31, 2020 Sales Revenue Cost of Goods Sold 705000 Gross Profit/(Loss) 504000 Selling Expenses Selling Expenses 125200 Administrative Expenses 170800 296000 < 208000 Interest Expense 7100 Dividend Revenue 18700 Interest Expense - 11600 196400 Income Before Income Taxes -58920 Income from Continuing Operations 137480 Income from Continuing Operations -51800 Discontinued Operations Loss, Net of Tax $ 85680 Net Income /(Loss) Per Share of Common Stock $ 85680 Net Income /(Loss) 50000 $...
Unadjusted Financial Statements income Statement For the Year Ended December 31, 2017 Service revenue $70,600.00 Wages expense 44,300.00 Net income $26,300.00 Cole Designs Inc. Balance Sheet December 31, 2017 Assets Cash $5,000.00 Accounts receivable 32,600.00 Supplies 3,650.00 5 Prepaid insurance 4,000.00 6 Office equipment 11,000.00 Total assets $56,250.00 Liabilities Unearned revenue $9,500.00 Stockholders' Equity Common stock $12,000.00 12 Retained earnings 34,750.00 46,750.00 13 Total liabilities and stockholders'equity $56,250.00 Cole Designs Inc. Income Statement For the Year Ended December 31, 2017...
Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in 9 millions) 2006 2006 2005 Assets Current Assets Cash 59.3 85.1 73.5 Liabilities and 2005 Stockholders' Equity Current Liabilibes 58.5 Accounts payable Notes payable/ 39.6 short-term debt Current maturities of 42.9 long-term debt 3.0 Other current liabilities 144.0 Total current liabilities Accounts receivable 542 9.6 9,6 Inventories Other current assets Total current assets 45 5.7 1642 38.2 6.0 138.9 36.9 12.0 1320 OA. 4.59 OB. 2.3 O C. 1.15...
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Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in 9 millions) 2006 2006 2005 Assets Current Assets Cash 52 85.3 73.5 Liabilities and 2005 Stockholders' Equity Current Liabilities 58.5 Accounts payable Notes payable/ 39.6 short-term debt Current maturities of 42.9 long-term debt Other current liabilities Accounts receivable 56 10.1 9.6 Inventories Other current assets 46.9 6 39.1 6.0 3.0 36.9 12.0 Total current assets 160.9 144.0 Total current liabilities 140.5 132.0 230.9 Long-Term Liabilities Long-term debt Capital lease...
Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) 2006 610.17 - 500.2 109.9 2005 578.3 - 481.9 96.4 Total sales Cost of sales Gross profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating income - 40.5 - 24.6 - 3.6 41.2 - 39.0 - 22.8 - 3.3 31.3 -- - Other income Earnings before interest and taxes (EBIT) Interest income (expense) Pretax income Taxes Net income 41.2 25.1 16.1 -5.5 10.6 31.3 15.8...
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