Question

please write a few sentences to answer the question.

As reported in 2008 As reported in 2009 Difference 2008 Net Income 272,255 436,386 272,255 498,262 2008 Operating (58,876) Income Required: Why does 2008 Operating Income reported in 2009 differ from that originally reported in 2008? Why does Net Income not differ across the two reports?

Answer 1

A) The operating income reported 2009 is differ from the reported operating income in 2008 because of two reasons:

1)The operating income in 2009 is more of $58,876 as compared to operating of 2008 may be because of the operating cost in year 2009 is less of $58,876 as compared 2008 assuming the revenue is same in both year.

2) Another reason is that revenue earned is more of $58,876 in 2009 as compared to 2008 revenue assuming the operating cost remain constant in both the years.

B) Net Income not differ across the two reports because there is increase in the interest expenses and the provision of tax of $58,876 in 2009 lead to reduction in the operating income and remain the same level of net income in both the years.