EX 4-7 Income statement

FedEx Corporation had the following revenue and expense account balances (in millions)
at its fiscal year-end of May 31, 2009:

Depreciation $1,975                               Purchased Transportation $ 4,534
Fuel 3,811                                              Rentals and Landing Fees 2,429
Maintenance and Repairs 1,898              Revenues 35,497
Other Expense (Income) Net 6,406        Salaries and Employee Benefi ts 13,767
Provision for Income Taxes 579

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 academic .cengage
.com/accounting/warren. What similarities and differences do you see?

Answer:

FEDEX CORPORATION 

Income Statement 

For the Year Ended May 31, 2009 

(in millions) 

Revenues....................................................................$35,497
Expenses:
 Salaries and employee benefits.....................$13,767
 Purchased transportation................................4,534
 Fuel..........................................................3,811
 Rentals and landing fees................................ 2,429
 Depreciation .................................................1,975
 Maintenance and repairs................................1,898
 Provision for income taxes ..............................579
 Other expense (income) net.......................... 6,406
 Total expenses......................................................... 35,399
Net income...............................................................  $ 98

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.