Depreciation $1,973 Purchased Transportation $ 5,674
Fuel 4,151 Rentals and Landing Fees 2,462
Maintenance and Repairs 1,979 Revenues 39,304
Other Expense (Income) Net 5,524 Salaries and Employee Benefits 15,276
Provision for Income Taxes 813
a. Prepare an income statement.
b. Compare your income statement with the related income statement that is available at the FedEx Corporation Web site, which is linked to the text’s Web site at www.cengagebrain.com. What similarities and differences do you see?
Answer:
FEDEX CORPORATION
Income Statement
For the Year Ended May 31, 2011
(in millions)
Revenues $39,304
Expenses:
Salaries and employee benefits $15,276
Purchased transportation 5,674
Fuel 4,151
Rentals and landing fees 2,462
Maintenance and repairs 1,979
Depreciation 1,973
Provision for income taxes 813
Other expense (income) net 5,524
Total expenses 37,852
Net income $ 1,452
b. The income statements are very similar. The actual statement includes some additional expense and income classifications. For example, the actual statement reports Income Before Income Taxes and Provision for Income Taxes separately. In addition, the "Other expense (income) net" in the text is a summary of several items from the Web site, including Intercompany charges, Interest expense, and Interest income.