The Portable MBA in Finance and Accounting, 3rd Edition

48 Understanding the Numbers from those that have been or are being discontinued. Only the discontinuance of operations that con ...

Analyzing Business Earnings 49 Exhibit 2.11. This summary highlights the rarity of extraordinary items under current reporting r ...

50 Understanding the Numbers EXHIBIT 2.11 Frequency and nature of extraordinary items. 1996 1997 1998 1999 Debt extinguishments ...

Analyzing Business Earnings 51 frequent in the Bay Area. However, the magnitude of this quake, at about 7.0 on the Richter scale ...

52 Understanding the Numbers Institute of Certified Public Accountants (AICPA). The distribution of adop- tion dates across seve ...

Analyzing Business Earnings 53 Adoption of the new method increased 1998 income from continuing operations by approximately $3.0 ...

54 Understanding the Numbers The $25.7 million reduction in 1999 depreciation was not set out sepa- rately in Southwest’s 1999 i ...

Analyzing Business Earnings 55 line, and (4) the write-down of patent costs and goodwill. The Escalon income statement also disc ...

56 Understanding the Numbers Interpreting Information in the Operating Activities Section The statement of cash f lows is an imp ...

Analyzing Business Earnings 57 certain items of revenue, gain, expense, and loss. For example, depreciation and amortization are ...

58 Understanding the Numbers operating cash f low. This deduction may indicate either that no cash was col- lected in connection ...

Analyzing Business Earnings 59 precious metal inventories valued under the LIFO method. The after-tax effect on continuing opera ...

60 Understanding the Numbers is expressed in terms of the relationship of the tax reduction to income from continuing operations ...

Analyzing Business Earnings 61 The benefit from the tax redetermination is clearly a nonrecurring item. The tax reductions due t ...

62 Understanding the Numbers charge; decreasing it, a benefit. The prospects for realization of the tax benefit must have declin ...

Analyzing Business Earnings 63 1998 to 1999. In the absence of sharp changes in the balance over time, an an- alyst would be les ...

64 Understanding the Numbers be inversely related. For example, excluding subtotals and the bottom line of the income statement, ...

Analyzing Business Earnings 65 continuing operations and, in each case, indicate the extent to which income was so affected. In ...

66 Understanding the Numbers years. This might seem inconsistent with the term nonrecurring.Phillips Pe- troleum provides the fo ...

Analyzing Business Earnings 67 The discussion to this point has taken us through the first six steps in the nonrecurring-items s ...