Most libraries maintain the annual reports of large companies on file or on microfiche.

Instructions Obtain the 2001 annual reports for UAL Corp. and The Boeing Company, and answer the following questions concerning their income statements. (Note: Larger libraries may have CD-ROM products such as Laser Disclosure or Compact Disclosure. UAL and Boeing are also on the Take Action! CD or can be found online in the SEC EDGAR database.)

(a) Describe the major differences between the income statement formats.

(b) Identify any irregular items on either of the income statements.

(c) UAL includes a separate line for depreciation expense, while Boeing does not. Why is this the case?

Does Boeing’s depreciation expense appear on another financial statement?

(d) UAL’s income statement includes significantly more detail than Boeing’s. Which presentation do you prefer? Why?