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Use the following information to answer the questions below.CATERPILLAR INC. Statement of Income for a Recent YearTotal sales and revenues......................................................................................$55,184,000Less: Cost of products sold...................................................................................$40,391,000Gross profit.......................................................................................,....................$ 14,793,000Less: Operating costs :Selling, general, and administrative expenses................................................ $ 5,697,000Research and development expenses............................................................$2,135,000Other operating expenses...............................................................................$1,633,000Total operating costs.............................................................................................$ 9,465,000Operating profit.....................................................................................................$ 5,328,000Less: Other expenses............................................................................................245,000Consolidated profit before taxes..........................................................................$ 5,083,000Provision for income taxes....................................................................................1,380,000Profit of consolidated companies.........................................................................$ 3,703,000WAL-MART STORES, INC.Statement of Income for a Recent Year ValueTotal revenues.......................................................................................................$485,651,000Less: Cost of sales.................................................................................................$365,086,000Gross profit............................................................................................................$120,565,000Less: Operating, selling, general. and administrative expenses......................... 93,418,000Operating income.................................................................................................$ 27,147,000Less: Interest expense, net...................................................................................2,348,000Income from continuing operations before income taxes................................... $ 24,799,000Provision for income taxes....................................................................................(7 ,985,000)Income from discontinued operations, net of tax................................................ 285,000Consolidated net income......................................................................................$ 17,099,000SOUTHWEST AIRLINES CO.Statement of Income for a Recent YearOperating revenue:Passenger.........................................................................................................$ 17,658,000Freight...............................................................................................................175,000Other.................................................................................................................772,000Total operating revenue...................................................................................$ 18,605,000Less: Operating expenses:Salaries, wages, and benefits..........................................................................$ 5,434,000Fuel and oil.......................................................................................................5,293,000Maintenance materials and repairs.................................................................978,000Aircraft rentals...................................................................................................295,000Landing fees and other rentals........................................................................1,111,000Depreciation and amortization.........................................................................938,000Acquisition and integration..............................................................................126,000 .Other operating expenses...............................................................................2,205,000Total operating expenses.................................................................................$ 16,380,000Operating income.................................................................................................$ 2,225,000Other expenses (income):Interest expense...............................................................................................$ 130,000Capitalized interest...........................................................................................(23,000)Interest income.................................................................................................(7,000)Other (gains) losses, net·······································'···········································309,000Total other expenses (income).........................................................................$ 409,000Income before income taxes................................................................................$ 1,816,000Provision for income taxes....................................................................................680,000Net income............................................................................................................$ 1, 136,000ANSWER THESE QUESTIONS USING THE ABOVE INFORMATION:1. List the major differences between the income statementsshown for Catepillar Inc., Walmart and Southwest2. Explain how cost-accounting data were used to prepare theseincome statements.3. On the income statement for where would the ticket agents'salaries be shown? Where would the costs of the computer equipmentused to keep track of reservations be included on thestatement?4. On the income statement for where would the cost of newspaperadvertising be shown? How about the cost of merchandise?5. Where would the salary of the brand manager who plansadvertising for equipment be shown? How about the salary of aproduction employee? Where would the cost of the raw materials usedin the company's products be included on the statement?