Textbook: Foundations of Financial Management - Ch 5 Web Exercise
Company: United Continental Holdings, Inc.
1. On the below referenced income statement for years 2014-2016, describe the pattern of change for "Total Revenue" and also Income from Continuing Operations" in one paragraph.
Income statement- numbers to work with for this problem
Total revenue: 2016 = $36,556,000 2015= $37,864,000 2014: $38,901,000
Income from Continuing Operations:
Total other income/expenses net: 2016: 23,000 2015: -327,000 2014: -562,000
Earnings before interest and taxes: 2016: 4,361,000 2015: 4,839,000 2014: 1,811,000
Interest Expense: 2016: 542,000 2015: 620,000 2014: 683,000
On the below referenced balance sheet, describe the pattern of change in "stockholders equity" and indicate whether this does or does not appear to be a matter of concern.
Stockholders equity 2016 2015 2014
Common Stock 3,000 4,000 4,000
Retained Earnings: 3,427,000 3,457,000 -3,883,000
Treasury Stock: -511,000 -1,610,000 -367,000
Capital Surplus: 6,569,000 -7,946,000 -7,721,000
Other stockholder equity: -829,000 -831,000 -1,079,000
Total stockholder equity: 8,659,000 8,966,000 2,396,000