Identifying Operating Income Components Following is the Deere & Company income statement for 2018. $ millions...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Identifying Operating Income Components Following is the Deere & Company income statement for 2018. $ millions 2018 Net sales and revenues Net sales.... Finance and interest income.. $33,350.7 3,106.6 900.4 Other income Total ... Costs and expenses Cost of sales..... Research and development expenses. Selling, administrative and general expenses. Interest expense..... Other operating expenses. $37,357.7 $25,571.2 1,399.1 1,657.6 3,455.5 1,203.6 Total . 33,287.0 Income of consolidated group before income taxes. Provision for income taxes... 4,070.7 1,726.9 Income of consolidated group 2,343.8 .... Equity in income of unconsolidated affiliates.. Net income... Less: Net income attributable to noncontrolling interests.. 26.8 2,370.6 2.2 Net income attributable to Deere & Company ... $ 2,368.4 .. Notes: • The income statement includes John Deere commercial and consumer tractor segment, a finance subsidiary that provides loan and lease financing relating to the sales of those tractors, and a healthcare segment that provides managed healthcare services for the company and certain outside customers. • Equity in income of unconsolidated affiliates refers to income John Deere has earned on investments made for strategic purposes. a. Identify the components in its income statement that we would consider operating. b. Discuss our treatment of the company's finance and interest income and the income from the uncon- solidated affiliates. Would these items be treated as operating or nonoperating? Identifying Operating Income Components Following is the Deere & Company income statement for 2018. $ millions 2018 Net sales and revenues Net sales.... Finance and interest income.. $33,350.7 3,106.6 900.4 Other income Total ... Costs and expenses Cost of sales..... Research and development expenses. Selling, administrative and general expenses. Interest expense..... Other operating expenses. $37,357.7 $25,571.2 1,399.1 1,657.6 3,455.5 1,203.6 Total . 33,287.0 Income of consolidated group before income taxes. Provision for income taxes... 4,070.7 1,726.9 Income of consolidated group 2,343.8 .... Equity in income of unconsolidated affiliates.. Net income... Less: Net income attributable to noncontrolling interests.. 26.8 2,370.6 2.2 Net income attributable to Deere & Company ... $ 2,368.4 .. Notes: • The income statement includes John Deere commercial and consumer tractor segment, a finance subsidiary that provides loan and lease financing relating to the sales of those tractors, and a healthcare segment that provides managed healthcare services for the company and certain outside customers. • Equity in income of unconsolidated affiliates refers to income John Deere has earned on investments made for strategic purposes. a. Identify the components in its income statement that we would consider operating. b. Discuss our treatment of the company's finance and interest income and the income from the uncon- solidated affiliates. Would these items be treated as operating or nonoperating?
Expert Answer:
Answer rating: 100% (QA)
sales operating Finance and intrest income operating Other income operating Cost of sale operating R... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
Students also viewed these accounting questions
-
Problem-4: An inverted hollow container with a uniform cross section area, A and height, H is slowly pushed into water as shown. The water rises into the container by a distance l (and compresses the...
-
Selling Expenses and General and Administrative Expenses Operating expenses are subdivided between selling expenses and general and administrative expenses when a multiple-step income statement is...
-
Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense Net income
-
Show that an emission tax and an absolute emission standard are equivalent instruments to regulate a polluting monopolist if and only if the standard is binding.
-
Which of the portfolios identified in Practice Problem 18 are undervalued, correctly valued, and overvalued?
-
Wayneowns 30% of Label Maker Corporation. Label Maker is organized as an S corporation. During 2018, Label Maker has a loss of $160,000. At the beginning of 2018, Wayne's at-risk amount in Label...
-
Water is to be pumped from the large tank shown in Fig. P5.119 with an exit velocity of \(6 \mathrm{~m} / \mathrm{s}\). It was determined that the original pump (pump 1) that supplies \(1...
-
On January 16, 2008, the SEC charged two former employees of PricewaterhouseCoopers LLP with insider trading. According to the SECs complaint, Gregory B. Raben, a former PwC auditor, and William...
-
An isotropic point source emits S neutrons/s in an infinite moderator (i.e., low absorbing and highly scattering). PART 3A): Obtain the formulation, which upon solution yields the total number of...
-
American Auto is evaluating their marketing plan for the sedans, SUVs, and trucks they produce. A TV ad featuring this SUV has been developed. The company estimates that each showing of this...
-
Lake Appliance produces washers and dryers in an assembly-line process. Payroll costs incurred during a recent period were: corporate executives, $570,000; assembly-line workers, $230,000; security...
-
A hippos body is 4.0 m long with front and rear feet located as in Figure P8.8. The hippo carries 60% of its weight on its front feet. How far from its tail is the hippos center of gravity? 0.5 m 1.8...
-
Male birds of many species have brighter feathers than females. Bright colors on males are often adaptations for winning mates, as in the case of birds of paradise and peacocks, discussed in this...
-
Explain how DNA is damaged by exposure to radioactive materials.
-
True or False: @RISK simulation is limited to Latin Hypercube sampling.
-
The human genome includes all the DNA found in all of our chromosomes. Rank these parts of the human genome from highest percentage of our total DNA to lowest percentage of our total DNA: (a) DNA...
-
How to design go to market strategy for a moile phone using marketing analytics?
-
If (x) 0 on the interval [a, b], the definite integral gives the exact area under the curve between x = a and x = b.
-
The financial statements of Ford Motor Company reveal the information regarding income taxes shown in Exhibit 2.8. Required a. Assuming that Ford had no significant permanent differences between book...
-
A firm's income tax return shows taxes currently payable for Year 4 of $50,000. It reports deferred tax assets of $42,900 at the beginning of Year 4 and $38,700 at the end of Year 4. It reports...
-
Wyeth (formerly American Home Products) is a global leader in prescription pharmaceuticals, nonprescription medicines, and animal health care products. Wyeth's products are sold in more than 140...
-
Determine the probability mass function of \(X\) from the following cumulative distribution function: \[ F(x)=\left\{\begin{array}{lr} 0 & x. \] Figure 3.3 displays a plot of \(F(x)\). From the plot,...
-
The probability that a wafer contains a large particle of contamination is 0.01. If it is assumed that the wafers are independent, what is the probability that exactly 125 wafers need to be analyzed...
-
Two new product designs are to be compared on the basis of revenue potential. Marketing believes that the revenue from design A can be predicted quite accurately to be \(\$ 3\) million. The revenue...
Study smarter with the SolutionInn App