<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM XEROX
CORPORATION'S DECEMBER 31, 1997 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-31-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                              75
<SECURITIES>                                         0
<RECEIVABLES>                                   14,979
<ALLOWANCES>                                       481
<INVENTORY>                                      2,792
<CURRENT-ASSETS>                                10,766
<PP&E>                                           5,158
<DEPRECIATION>                                   2,781
<TOTAL-ASSETS>                                  27,732
<CURRENT-LIABILITIES>                            7,692
<BONDS>                                         12,653
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        705
<COMMON>                                           327
<OTHER-SE>                                       4,658
<TOTAL-LIABILITY-AND-EQUITY>                    27,732
<SALES>                                          9,892
<TOTAL-REVENUES>                                18,166
<CGS>                                            5,363
<TOTAL-COSTS>                                    9,622
<OTHER-EXPENSES>                                 6,403
<LOSS-PROVISION>                                   265
<INTEREST-EXPENSE>                                 617
<INCOME-PRETAX>                                  2,141
<INCOME-TAX>                                       728
<INCOME-CONTINUING>                              1,452
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,452
<EPS-PRIMARY>                                     4.31
<EPS-DILUTED>                                     4.04