Income Statement of Freeport-McMoRan company : -Calculate all the Profitability
ID: 2579212 • Letter: I
Question
Income Statement of Freeport-McMoRan company :
-Calculate all the Profitability Ratios ?(show the formula)
-Look at income statement presentation, which method does company follow: IASB or GAAP? How can you tell, be specific? In your opinion which income statement is better, IASB or GAAP?
Thanks for your help :)
FREEPORT-McMoRan INC. CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended December 31 2015 (In millions, except per share amounts) 2014 Revenues Cost of sales: $14.830 S 14,607 $20,001 10.697 2,530 4,317 36 17.580 607 64 20 Production and delivery 11.116 3,635 3,737 10,693 3,240 13,144 338 27,415 558 107 Impairment of oil and gas properties Metals inventory adjustments Total cost of sales Selling, general and administrative expenses Mining exploration and research expenses Environmental obligations and shutdown costs Goodwill impairment Net gain on sales of assets 18.494 580 106 119 1,717 (649) 17,622 (39) 28,119 (2,792) 13,512) (617) 20,299 (298) (606) 73 Total costs and expenses Operating loss Interest expense, net Net gain on exchanges and early extinguishment of debt Other income, net Loss from continuing operations before income taxes and equity in (755) 26 49 (3,472) (371) 14,128) (800) (225) affiliated companies' net earnings (losses) 1,951 (Provision for) benefit from income taxes Equity in affiliated companies' net earnings (losses) Net loss from continuing operations Net (loss) income from discontinued operations Net loss Net income attributable to noncontrolling interests: (3,832) (193) (4,025) (12,180) (12,089) (27) (1,022) 277 (745) Continuing operations Gain on redemption and preferred dividends attributable to redeemable Net loss attributable to common stockholders (227) (63) (358) (165) (79) noncontrolling interest 161 (40) 4,154) S(12,236 ) s , Basic and diluted net (loss) income per share attributable to common $ (2.96) S(11.32) $ 1.37) Discontinued operations 0.01 Basic and diluted weighted-average common shares outstanding Dividends declared per share of common stock The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements. 1,082 S 0.2605 $Explanation / Answer
FreePORT-McMoRan Inc. 2016 2015 2014 Gross profit(loss) to sales (14830-17580)/14830= (14607-25415)/14607= (20001-18494)/20001= -18.54% -73.99% 7.53% Operating profit(loss)to sales -2792/14830= -13512/14607= -298/20001= -18.83% -92.50% -1.49% Net loss(continuing operations) -3832/14830= -12180/14607= -1022/20001= -25.84% -83.38% -5.11% Net loss incl.discontinued operations) -4025/14830= -12089/14607= -745/20001= -27.14% -82.76% -3.72% Net loss(common stockholders) -4154/14830= -12236/14607= -1308/20001= -28.01% -83.77% -6.54% Freeport-McMoran follows GAAP as extraordinary item like net gain on early extinguishment of debt,shut-down costs and net loss ondiscontinued opertaions are presented in the Income statement ,whereas, these items are not allowed to be presented in the body of the income statement alongside the results for regular & continuing operations.In the latter, they will be presented in the Notes to teh financial statements. IASB is based on principles & GAAP is full of rules to be followed in maintaining & preparing accounting records. So, IASB will be more universally and conceptually applicable & may render the financial records comparable,acrossindustries & countries also.