An excerpt from the income statement from the 2001 annual report of Alcoa, Inc. is provided below.
|
For the year ended December 31, |
2001 |
|
(In millions except share amounts) |
|
|
Revenues |
|
|
Sales |
$22,859 |
|
Other income, net |
308 |
|
23,167 |
|
|
Costs and expenses |
|
|
Cost of goods sold |
17,857 |
|
Selling, general, administrative, and other expenses |
1,276 |
|
Research and development expenses |
203 |
|
Provision for depreciation, depletion, and amortization |
1,253 |
|
Interest expenses |
371 |
|
Other expenses |
566 |
|
21,526 |
|
|
Earnings |
|
|
Income before taxes on income |
1,641 |
|
Provision for taxes on income |
525 |
|
Income from operations |
$1,116 |
|
Minority interests’ share |
208 |
|
Net income |
$908 |
|
Earnings per common share |
$1.06 |
Briefly explain each item presented on the income statement. (Minority interest may be ignored if you are not studying the Other Topics section at the end of the chapter.) How much gross profit and operating income did Alcoa report for 2001?