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The information below is adapted from AT&Ts reported results for a recent decade of earnings disclosures and shows total revenue and pretax income (in millions).
The information below is adapted from AT&Ts reported results for a recent decade of earnings disclosures and shows total revenue and pretax income (in millions). The pretax income numbers include special pretax restructuring charges, as given in the last column.
Total Pretax Special
Year Revenue Income Charges
20x0 $41,842 $2,681 $(3,500)
20x1 42,960 6,246
20x2 43,780 6,577
20x3 46,000 7,409
20x4 48,455 5,184 (3,000)
20x5 50,546 8,763
20x6 51,319 6,968
20x7 53,223 7,487 (2,514)
20x8 62,600 10,859 (1,506)
20x9 65,981 4,277 (7,029)
- Compute pretax operating income before special restructuring charges, as would be more helpful to a financial analyst.
- Prepare a graph to compare the trend in reported pretax income with the trends of revenues and adjusted income computed in part a.
- Discuss which set of operating income data is most relevant for analyzing the firm and suggest how you might incorporate the nonrecurring charges in your analysis.
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