Reference no: EM13341088

a. Xerox reports several sources of income. How should revenue be recognized for each of these busi¬ness activities? Explain.

b. Compute the relative size of Sales revenue (total) and of revenue from Service, outsourcing and rent¬als. Hint: Scale each type of revenue by Total revenue. Which type of revenue grew more in 2010?

c. Xerox reports research, development and engineering expenses (R&D) each year. Compare R&D spending over the three years. Hint: Scale R&D by Total revenue each year. What might explain the change in 2010?

d. Xerox reports restructuring costs each year. (1) Describe the three typical categories of restructur¬ing costs and the accounting for each. (2) How do you recommend treating these costs for analys purposes? (3) Should regular recurring restructuring costs be treated differently than isolated occur• rences of such costs for analysis purposes? (4) What does the $(8) expense in 2009 imply about one or more previous year's accruals?

e. Xerox reports $389 million in expenses in 2010 labeled as "Other expenses, net." How can a com-pany_use such an account to potentially obscure its actual financial performance?