How is net income different from comprehensive income

Assignment Help Finance Basics

Reference no: EM131414294

When luxury car maker BMW recently released earnings, the Wall Street Journal reported that it compared poorly to the prior year for a number of reasons, including:

* rising raw material costs

* strength of the euro

* a large gain booked during the year

* rising costs to introduce new models

These factors contributed to a 38 percent drop in quarterly income despite a 2.9 percent increase in sales.

REQUIRED:

a. Discuss where the above reasons would be represented in the financial statements.

b. Which of the above reasons might be considered permanent and recurring?

c. How is net income different from comprehensive income?

d. On the day of the earnings announcement, BMW's stock price rose 1 percent. What other factors would an analyst review in addition to the earnings?

Reference no: EM131414294

Questions Cloud

What behavior was highly unethical : What behavior was highly unethical? I expect you to describe a singular breach of ethical conduct. If there was a transaction that was particularly unethical.

Prices from price discrimination : Evaluate the prices from uniform pricing to the prices from price discrimination. Which pricing strategy is better? Why?

How to establish the foundational areas for growth in data : You will present the overall project and how to establish the foundational areas for growth potential in data and user capability. Consider the concerns regarding a Macro project and the multiple Micro projects.

How the fish bone diagram is created : The Fishbone Diagram is a highly effective tool when implemented by a qualified individual. How Fish Bone diagram is created. The benefits of using a Fish Bone diagram. An example of when the Fish Bone diagram is most useful.

How is net income different from comprehensive income : On the day of the earnings announcement, BMW's stock price rose 1 percent. What other factors would an analyst review in addition to the earnings?

How is collusion used in oligopoly markets : How is collusion used in oligopoly markets? What is a cartel? Are they legal? Give one example of either collusion or a cartel that has occurred in the past?

The essendon football club supplements crisis from 2013-2017 : Welfare of the person (it will be public and that can have an adverse effect) and Get the facts) what has actually happened people might leave details to portray in a better light)

What was nike’s net income per share of common stock : How does NIKE disclose other comprehensive income items, and what was the comprehensive income amount for 2009? Was it above or below net income, and why?

Small manufacturing facility that produces widgets : You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market with many competitors in this market. From data collected on the Widget Market, you know that market demand has recently decr..

User Account

All Pages