Year Ending December 31, 2001
Operating income (loss) $ _______________________________
Net income $ _______________________________
Net cash flows from operating activities $ _______________________________- Would you report the loss related to the terrorist attacks separately in the income statement?
If so, how?
The following data (in millions) for 2004, 2003, and 2002 were taken from 10-K filings with the
Securities and Exchange Commission:2004 2003 2002
Company A
Revenues $21,962 $21,044 $19,564
Operating income 5,698 5,221 5,458
Net income 4,847 4,347 3,050
Net cash flows from operating activities 5,968 5,456 4,742
Net cash flows from investing activities (503) (936) (1,187)
Net cash flows from financing activities (2,261) (3,601) (3,327)
Total assets 31,327 27,342 24,501Company B
Revenues $15,002 $13,303 $13,305
Operating income (loss) (3,308) (786) (1,309)
Net income (loss) (5,198) (773) (1,272)
Net cash flows from operating activities (1,123) 453 285
Net cash flows from investing activities (220) (260) (1,109)
Net cash flows from financing activities 636 548 583
Total assets 21,801 26,356 24,720Company C
Revenues $ 6,921 $ 5,264 $ 3,933
Operating income (loss) 440 271 64
Net income (loss) 588 35 (149)
Net cash flows from operating activities 567 392 174
Net cash flows from investing activities (318) 237 (122)
Net cash flows from financing activities (97) (332) 107
Total assets 3,249 2,162 1,990Company D
Revenues $53,791 $51,760 $50,098
Operating income (loss) 1,374 2,573 2,359
Net income (loss) 315 1,205 1,043
Net cash flows from operating activities 2,215 3,183 2,347
Net cash flows from investing activities (2,026) (1,907) (1,914)
Net cash flows from financing activities (201) (1,266) (433)
Total assets 20,184 20,102 19,087- Match each of the following companies with the data for Company A, B, C, or D:
Amazon.com
Coca-Cola Inc.
Delta Air Lines
Kroger- Explain the logic underlying your matches.
144 Chapter 3 Accrual Accounting Concepts
Case 3-5
Analysis of income and cash
flows