The following information was reported in the December 31, 2010, financial statements of
Southwest Airlines, Inc. (listed alphabetically, amounts in millions).

1. Prepare an income statement for the year ended December 31, 2010.
2. Prepare a statement of retained earnings for the year ended December 31, 2010.
3. Prepare a balance sheet at December 31, 2010.
4. Using the balance sheet, indicate whether the total assets of Southwest Airlines at the end of the year were financed primarily by liabilities or stockholders' equity.

Transcribed Image Text:

Accounts Payable Accounts Receivable Aircraft Fuel Expense Cind Contributed Capital Dividends Income Tax Expense Interest Expense Landing Fees Expense Notes Payable $1,602 Other Assets 95 Other Liabilities 3,620 Other Expenses 3,538 Other Revenue S 909 1.703 2,340 615 838 31 287 136 807 Property and Equipment Repairs and Maintenance Expense Retained Earnings (as of December 31) Salaries Expense Supplies 751 5,399 3,704 243 11,489 5,21 Ticket Revenues