Preparing an Income Statement
Wood way Company’s annual report contained the following data (dollars in millions) on its income statement
|
Interest expense |
$ 2,489 |
|
Investment income |
11,218 |
|
Other income |
9,033 |
|
Depreciation |
1,257 |
|
Revenues |
591,762 |
|
Other expenses |
8,482 |
|
Cost of sales |
482,355 |
|
Operating expenses |
98,576 |
|
Income taxes |
52 |
Required
a. Prepare an income statement using a multiple step format.
b. Revise your income statement (from part a above) to include the following two additional items from Wood way’s annual report (dollars in millions):
|
Loss on discontinued operations, net of tax |
$1,025 |
|
Extraordinary loss, net of tax |
314 |