Electronic Solutions
Motorola presented these consolidated statements of operations for the years 1996, 1997, and 1998.
|
Consolidated Statements of Operations (In millions, except per share amounts) |
Motorola, Inc. and Subsidiaries |
||
|
Years ended December 31 |
1998 |
1997 |
1996 |
|
Net sales |
$29,398 |
$29,794 |
$27,973 |
|
Costs and expenses |
|||
|
Manufacturing and other costs of sales |
20,886 |
20,003 |
18,990 |
|
Selling, general and administrative expenses |
5,493 |
5,188 |
4,715 |
|
Restructuring and other charges |
1,980 |
327 |
— |
|
Depreciation expense |
2,197 |
2,329 |
2,308 |
|
Interest expense, net |
216 |
131 |
185 |
|
Total costs and expenses |
30,772 |
27,978 |
26,198 |
|
Earnings (loss) before income taxes |
(1,374) |
1,816 |
1,775 |
|
Income tax provision (benefit) |
(412) |
636 |
621 |
|
Net earnings (loss) |
$ (962) |
$1,180 |
$1,154 |
Required a.Does it appear that there is 100% ownership in all consolidated subsidiaries? Discuss.
b. If a subsidiary were not consolidated but rather accounted for using the equity method, would this change net income? Explain.
c. Present a multiple step income statement.
d. Determine the net income for each year with the nonrecurring items excluded.