The following is from a recent income statement for Baring Corp (a public company):

It includes only five separate numbers, two subtotals, and the net earnings figure.
Instructions
(a) Indicate the deficiencies in the income statement.
(b) What recommendations would you make to the company to improve the usefulness of its income statement?
(c) Why do some businesses provide only a minimal disclosure of financial statement elements on their income statement?

Transcribed Image Text:

Sales revenue Costs and expenses Income from operations Other income Interest and debt expense Earnings before income tax Income tax Net income $21,924,000,000 20,173,000,000 1,151,000,000 22,000,000 130,000,000) 1,043,000,000 (287,000,000) $ 756,000,000