(Income Reporting Deficiencies) The following represents a recent income statement for Boeing Company.
|
($ in millions) |
|
|
Sales |
$21,924 |
|
Costs and expenses |
20,773 |
|
Income from operations |
1,151 |
|
Other income |
122 |
|
Interest expense |
130 |
|
Earnings before income taxes |
1,143 |
|
Income taxes |
287 |
|
Net income |
$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?