The following information is based on the financial statements of Boeing Company for the year ended December 31, 2007. During 2007 Boeing reported revenues of $66,387 million and net expenses including income taxes) of $62,313 million. Assume that during 2007, Boeing collected $65,995 in cash from customers and had cash outflows associated with payments to suppliers and vendors of $56.411.
a.. Calculate Boeing’s net income for 2007 and its net cash flow for 2007.
b. How can Boeing’s cash collected from customers in 2007 exceed its revenues in 2007?
c. How Can Boeing’s cash payments to suppliers and vendors be less than its expenses for 2007?