.A statistical anomaly or sign of things to come? Busness Week’s flash earnings report-an early sampling of fourth quarter results from 80 companies reporting through Jan. 21 ame out flat. Revenues rose 6%, while earnings held steadV, VS. 8,47% jump in flash profits a year earlier.
Results are skewed by some large enenme losses: Unlsys and Eastman Kodak each took more than $1.billion in charges. But Apple Computer and Computer !esInternational returned to profitability after !osses in 1996.
General Electric and the Big Three carmakers are expected to have ‘strong quarters, but fe!1her charges from the likes of Boeing could keepJ~e tally .Companies like Unisys, Eastman Kodak, and Apple Computer are evaluated to a significant degree based on their net income or earnings.
Consequently, the income statement is a particularly important financial statement to use in comparing and evaluating companies. In this chapter we discuss the income statement in
greater depth and show how it contributes useful information that helps investors and creditors make important financial decisions