On September 11, 2001, two United Airlines aircraft were hijacked and destroyed in terrorist attacks on the World Trade Center in New York City and in a crash near Johnstown, Pennsylvania. In addition to the loss of all passengers and crew on board the aircraft, these attacks resulted in numerous deaths and injuries to persons on the ground and massive property damage. In the immediate aftermath of the attacks, the FAA ordered all aircraft operating in the United States grounded immediately. This grounding effectively lasted for three days, and United was able to operate only a portion of its scheduled flights for several days thereafter. Passenger traffic and yields on United€™s flights declined significantly when flights were permitted to resume, and United refunded significant numbers of tickets for the period from September 11 to September 25. The following data for United were adapted (in millions) from the Securities and Exchange Commission 10-K filing for the years ending December 31, 2000 and 1999:

1. Based upon the preceding data, develop an expectation of what you believe the operating income, net income, and net cash flows from operating activities would be for United Airlines for the year ending December 31, 2001. Use the following format for your answers:
Year Ending December 31, 2001
Operating income (loss) $_______________________________
Net income $_______________________________
Net cash flows from operating activities $_______________________________
2. Would you report the loss related to the terrorist attacks separately in the income statement? If so,how?

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Year Ending December 31 Operating income Net income Net cash flows from operating activities 2000 S 673 52 2,358 1999 $1,342 1,204 2,415