Eaton Corporation Had Net Income of $6,000,000 in 2010

question 30

Essay

Eaton Corporation had net income of $6,000,000 in 2010. Using 2014 as the base year, net income decreased by 70% in 2013 and increased by 140% in 2014.
Required: Compute the net income reported by Eaton Corporation for 2013 and 2014.

---

Definitions:

Future Cash Flows

The estimated amounts of money expected to be received or paid out in the future as a result of business operations or investments.

Capital Investment Decisions

Pertains to the process of deciding on and committing to projects or investments that have long-term implications for a company's growth and profitability.

Long-term Commitment

A contractual agreement to perform certain activities or make payments over a period longer than one year.

Funds

Money that is available for spending or investment, often referred to within the context of managing or allocating financial resources.