Question: The following information was taken from the 2009 annual report of Emerson, a leader in process management, technology, network power, and industrial automation (dollars in

The following information was taken from the 2009 annual report of Emerson, a leader in process management, technology, network power, and industrial automation (dollars in millions).

2008 2009 S2,417 2007 S3,093 Net income before taxes 53,591 Income tax

REQUIRED

Comment on whether Emerson's financial accounting methods have been conservative or aggressive across the three-year period.

2008 2009 S2,417 2007 S3,093 Net income before taxes 53,591 Income tax expense: Current 1,085 52 571 1,028 Deferred 122 (64) S 693 S 964 31.2% Total $2,137 31.7% Effective tax rate 28.7%

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