Boeing Accounting For Dummies 1st QTR 2014

The flow of profitability for Boeing Flows like a watershed. The rainy season begins in the form of:

Marketing Rainfall called Sales.

Runs into a pond called Backlog Pond, with 5000 units backlog the outlet is running 161 Aircraft during the first Quarter, a key number of note.

Each unit run out of the pond pays the heat and lights that keep the pond sanitary and the backlog water fresh. Some evaporation occurs due to cancellation weather.

But the downward run to the bottom line is strong with 161 productions units. This Boeing water reaches the cash register called delivery (ka-ching). Boeing increases the flow of water by 1 billion over 2013 number, into its cash register from those 161 produced models delivered.

Boeing water is divided up past the cash register in the form of tips and corporate gratuity. This fork in the road is often called Earnings Before Interest/ Tax or the frog called "Ebit". Every unit delivered way back upstream coming out of the pond  makes Boeing money.

The Boeing pump in the pond, has been enlarged so more revenue booked can enrich its workers, government and executives, and I must not forget stock holders. So there is another set of areas dedicated to  stock holders, taxes and executives. Payroll handles everybody else somewhere back in the production cost center.

Cost centers is an important sounding name that some how is tied to a revenue center every time sales brings home the bacon. Cost centers is a chit collection box that spoons out water from the 161 delivery delivery stream. Now good accountants start to lose people in this flow chart at this cost accounting point. Stay with it, its quite simple.

Once in awhile a worker in production dares ask, how big is the pond? Because that's all they know is the pond. He wanted a transfer anyway, savvy?

What Boeing is doing is leading its stockholders by pond size. As size really does matter! The bigger the pond, the bigger the production stream, the bigger the stockholder satisfaction and so forth.

Cancellation is the chink in the armour as is a recession. As airlines prospers or don't. Sales spots become limited because of Preditors  competitors. Boeing has to mop those types of sales quickly, and dump it into its pond. Dry seasons are a bane, but Boeing could endure a slow rainy season once or twice but no more.

Back to cartoon accounting for dummies 101. Boeing moves plants and facilities in a continuous effort, and then watch if it increases the down stream flow past the cash register. The 777X project is an important indicator of how will...

• Boeing will increase its productivity pump
• It rely upon the most experienced and reliable suppliers in Japan
• it build wings across the rain gutter drain at the current 777 build site.
• it build both new and old in the same zip code.

Zip Code Dynamics (ZCD) is the new Boeing Blue "it", as it keeps "it" within a zip code, and how it expands its pond with the Northwest. The ZCD has seen a consolidation of customer ancillary functions moved to Southern California. Customers like SoCal in the winter anyways. Cartoon accounting 101 suggest keeping the animals separate, is best. The Zebras won't mixed with the production gorillas and so forth. So the Zebras (customer service) will save down stream water from any draught condition found at Boeing or SoCal. ZCD has moved pipe-line productions logjams out of the NW to SC? (huh). Chicago hasn't got the ZCD memo yet. Its better that the Penguins (suits) stay in Chicago since the last Madagascar movie.