How is net income different from comprehensive income

Assignment Help Finance Basics

Reference no: EM131415377

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: EM131415377

Questions Cloud

What are the first three interest payments on the loan : What are the first three interest payments on the loan?

Create small databases to manage audio video and photo data : Create and edit audio and video files and share video and audio files via emails, instant messaging, and in chat rooms via mobile devices. Create small databases to manage all audio, video and photo data.

Management of the international human resource : For this assignment, please read the introduction as well as chapters 1 and 2 of When Teams Collide: Managing the International Team Successfully as well as the article, "The Cultural Approach to the Management of the International Human Resource..

What do you think was happening in the eurobond market : What do you think was happening in the Eurobond market?

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?

Discuss each item in terms of its persistence : Explain the nature of each item, describe where they would be disclosed on the income statement (including comprehensive income), and state whether or not they would be reported net of taxes.

What is delivering good and neutral new messages : This is for my Branding and Communication Management Class. It needs to be at least 3 pages, double space and, 12 font. The topic is "Delivering Good and Neutral News Messages." I need four questions answered please. Questions are below.

Problem regarding the consistent and market competitive : Can a business develop compensation that is both internally consistent and market competitive? What are challenges to doing this? Defend your answer and discuss.

Why are they linked together in this art movement : Please respond to the following discussion topics and submit them to thediscussion forum as a single post. Your initial post should be 75-150 words in length.Then, make at least two thoughtful responses to your fellow students' posts. If youhaven'..

User Account

All Pages