<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM XEROX CORPORATION'S DECEMBER 31, 1994, FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<CASH>                                              35
<SECURITIES>                                         0
<RECEIVABLES>                                   12,157
<ALLOWANCES>                                       398
<INVENTORY>                                      2,294
<CURRENT-ASSETS>                                 9,249
<PP&E>                                           4,756
<DEPRECIATION>                                   2,648
<TOTAL-ASSETS>                                  19,374
<CURRENT-LIABILITIES>                            6,838
<BONDS>                                          8,653
<SALES>                                          7,853
<TOTAL-REVENUES>                                15,088
<CGS>                                            4,653
<TOTAL-COSTS>                                    8,171
<OTHER-EXPENSES>                                 5,403
<LOSS-PROVISION>                                   206
<INTEREST-EXPENSE>                                 757
<INCOME-PRETAX>                                  1,514
<INCOME-TAX>                                       595
<INCOME-CONTINUING>                                794