Solutions Manual b
Financial Accounting for MBAs 8thEdition
b b b b b
Easton Solutions Manual
b b
,Appendix bC
Comprehensive Case b
Reviewingbthe AssessingbProfitabilit Valuing
FinancialbStatement yandbCreditworthiness EquitybSecurities
Forecasting
s
■■b ROEbDisaggregation ■■Accounting
b Forecasting
bbNumbers
Assumpt ■■b DiscountedbCashbF
■■bIncomebStatementb b ionsb lowbValuationb
■■b Balanceb Sheetb ■■b RNOAbDisaggregati
■■b Forecastingb Financial ■■b ResidualbOperating
onbAnalysisb bStatementsb bIncomebValuationb
■■b Off-Balance-
Sheet bItemsb ■■b DisaggregationbofbM
arginbandbTurnoverb
■■b StatementbofbCashbF
■■b CreditbAnalysisb
lowsb
■■b AuditbOpinionb
PREVIEW
Thisbappendixbconsistsbofbabcomprehensivebcasebthatbpresentsbabfinancialbaccountingbanalysisbandbinterpretationb
ofbHarley-
Davidson’sbperformancebandbposition.bWebillustratebmanybofbthebkeybfinancialbreportingbtopicsbcoveredbinbthebboo
k.bWebreviewbthebcompany’sbfinancialbstatementsbandbnotes,bforecastbkeybaccounts,bandbconcludebwithbestimatesb
ofbHarley-Davidson’sbequitybvalue.b
Harley-Davidson
Operatingb Cashb Flow Investingb Cashb Flow Financingb Cashb Flow Netb Incomeb (Loss) Operatingb Cashb Flow Marketb Capb
$14Bb b b $1.4B $15Bb
2018b
$13B
2017b b $1.2Bb
$13Bb
$12B
b
2016b $1.0
$11Bbbbbb
2015b Bb $11B
2014b $10Bb b b $0.8
Bb
2013b $9Bb
$9B
$0.6Bb
2012b
$8Bb
$0.4Bb $7Bb
2011
$7Bb
$6B $0.2Bb
2010b
$5Bb $0.0B $5Bb
$(2.0)Bb b $(1.5)Bb b b $(1.0)Bb b b $-0.5B $0.0B $0.5B $1.5Bb b 2010 2011 2012 2013 2014 2015 2016 2017 2018
$1.0Bb b b b b b b b b
CashbFlowbbybType NetbIncome,bOperatingbCashbFlowbandbMarketbCap
,C-1
, Road Map
b
LO LearningbObjectiveb|bTopics Page eLecture
C-1 Explainbandbillustratebabreviewbofbfinancialbstatement C-3b eC–1b
sbandbtheirbcomponents.
IncomebStatementb::bBalancebSheetb::bStatementbofbCashbFlowsb::b
AuditbOpinionb
C-2 Assessbcompanybprofitabilitybandbcreditworthiness. C-23b eC–2b
ROEbDisaggregationb::bRNOAbDisaggregationb::bCreditbAnalysisb
C-3 Forecastbfinancialbstatements. C-27b eC–3b
IncomebStatementb::bBalancebSheetb::bStatementbofbCashbFlowsb
C-4 Describebandbillustratebthebvaluationbofbfirmbequity. C-30b eC–4b
DiscountedbCashbFlowbValuationb::bResidualbOperatingbIncomeb
Valuationb::bAssessmentb
C-2
Financial Accounting for MBAs 8thEdition
b b b b b
Easton Solutions Manual
b b
,Appendix bC
Comprehensive Case b
Reviewingbthe AssessingbProfitabilit Valuing
FinancialbStatement yandbCreditworthiness EquitybSecurities
Forecasting
s
■■b ROEbDisaggregation ■■Accounting
b Forecasting
bbNumbers
Assumpt ■■b DiscountedbCashbF
■■bIncomebStatementb b ionsb lowbValuationb
■■b Balanceb Sheetb ■■b RNOAbDisaggregati
■■b Forecastingb Financial ■■b ResidualbOperating
onbAnalysisb bStatementsb bIncomebValuationb
■■b Off-Balance-
Sheet bItemsb ■■b DisaggregationbofbM
arginbandbTurnoverb
■■b StatementbofbCashbF
■■b CreditbAnalysisb
lowsb
■■b AuditbOpinionb
PREVIEW
Thisbappendixbconsistsbofbabcomprehensivebcasebthatbpresentsbabfinancialbaccountingbanalysisbandbinterpretationb
ofbHarley-
Davidson’sbperformancebandbposition.bWebillustratebmanybofbthebkeybfinancialbreportingbtopicsbcoveredbinbthebboo
k.bWebreviewbthebcompany’sbfinancialbstatementsbandbnotes,bforecastbkeybaccounts,bandbconcludebwithbestimatesb
ofbHarley-Davidson’sbequitybvalue.b
Harley-Davidson
Operatingb Cashb Flow Investingb Cashb Flow Financingb Cashb Flow Netb Incomeb (Loss) Operatingb Cashb Flow Marketb Capb
$14Bb b b $1.4B $15Bb
2018b
$13B
2017b b $1.2Bb
$13Bb
$12B
b
2016b $1.0
$11Bbbbbb
2015b Bb $11B
2014b $10Bb b b $0.8
Bb
2013b $9Bb
$9B
$0.6Bb
2012b
$8Bb
$0.4Bb $7Bb
2011
$7Bb
$6B $0.2Bb
2010b
$5Bb $0.0B $5Bb
$(2.0)Bb b $(1.5)Bb b b $(1.0)Bb b b $-0.5B $0.0B $0.5B $1.5Bb b 2010 2011 2012 2013 2014 2015 2016 2017 2018
$1.0Bb b b b b b b b b
CashbFlowbbybType NetbIncome,bOperatingbCashbFlowbandbMarketbCap
,C-1
, Road Map
b
LO LearningbObjectiveb|bTopics Page eLecture
C-1 Explainbandbillustratebabreviewbofbfinancialbstatement C-3b eC–1b
sbandbtheirbcomponents.
IncomebStatementb::bBalancebSheetb::bStatementbofbCashbFlowsb::b
AuditbOpinionb
C-2 Assessbcompanybprofitabilitybandbcreditworthiness. C-23b eC–2b
ROEbDisaggregationb::bRNOAbDisaggregationb::bCreditbAnalysisb
C-3 Forecastbfinancialbstatements. C-27b eC–3b
IncomebStatementb::bBalancebSheetb::bStatementbofbCashbFlowsb
C-4 Describebandbillustratebthebvaluationbofbfirmbequity. C-30b eC–4b
DiscountedbCashbFlowbValuationb::bResidualbOperatingbIncomeb
Valuationb::bAssessmentb
C-2
