Response to the following problem:
In this exercise you will practice using the data of a well-known company. The 20X1 annual report of Fedex, the overnight shipping company, reported revenue of $19.6 billion. Total expenses for the year were $19.0 billion. Fedex ended the year with total assets of $13.3 billion, and it owed debts totaling $7.4 billion. At year-end 20X0, Fedex reported total assets of $11.5 billion and total liabilities of $6.7 billion.
Required:
1. Compute Fedex's net income for 20X1.
2. Did Fedex's owners' equity increase or decrease during 20X1? By how much?
3. How would you rate Fedex's performance for 20X1-good or bad? Give your reason.