Solutions Manual n
Financial Accounting for MBAs 8thEdition Easton
n n n n n n
Solutions Manual
n
,Appendix C
n
Comprehensive Case n
Reviewing nthe Assessing nProfitability Valuing
FinancialnStatements and nCreditworthiness Forecasting EquitynSecurities
■■nIncomen S tatement ■■nROEn Disaggregation Accounting
■■ nNumbers
nForecasting nAssum ■■nDiscountednCashn
■■nBalancenSheet ■■nRNOAnDisaggregati ptions FlownValuation
■■nOff-Balance- onnAnalysis ■■nForecastingnFinancial ■■nResidualnOperatin
SheetnItems ■■nDisaggregationnofn nStatements gnIncomenValuatio
MarginnandnTurnover n
■■nStatementnofnCashnFl
ows ■■n CreditnAnalysis
■■nAuditnOpinion
PREVIEW
This nappendix nconsistsnofnancomprehensivencasenthatnpresents nanfinancial naccountingnanalysis nandninterpretationn
ofnHarley-
Davidson’s nperformancenandnposition.nWenillustratenmany nofnthenkeynfinancialnreportingntopics ncoveredninnthenboo
k.nWenreviewnthencompany’s nfinancialnstatements nandnnotes,nforecastnkeynaccounts,nandnconcludenwithnestimates n
ofnHarley-Davidson’s nequity nvalue.
Harley-Davidson
Operatingn Cashn Flow Investingn Cashn Flow Financingn Cashn Flow Net n Incomen (Loss) Operatingn Cashn Flow Market n Cap
$14Bn n $1.4B $15B
2018
$13B
2017 $1.2B
$12B $13B
2016 $1.0
$11Bn n
2015 B
$11B
2014 $10Bn n $0.8
B
2013 $9B
$9B
$0.6B
2012
$8B
$0.4B $7B
2011
$7B
$6B $0.2B
2010
$5B $0.0B $5B
$(2.0)Bn n $(1.5)Bn n $(1.0)B $-0.5B $0.0B $0.5B $1.0B $1.5B 2010 2011 2012 2013 2014 2015 2016 2017 2018
CashnFlownbyn Type NetnIncome,n Opera ti n gnCas hn Flown an d nM arke tnCap
,C-1
, Road Map
n
LO Learning nObjectiven|nTopics Page eLecture
C-1 Explainnandnillustrate nanreview nofnfinancialnstatements na C-3 eC–1
ndntheir ncomponents.
IncomenStatementn::nBalancenSheetn::nStatementnofnCashnFlows n::n
AuditnOpinion
C-2 Assess ncompanynprofitabilitynandncreditworthiness. C-23 eC–2
ROEnDisaggregationn::nRNOAnDisaggregationn::nCreditnAnalysis
C-3 Forecastnfinancialnstatements. C-27 eC–3
IncomenStatementn::nBalancenSheetn::nStatementnofnCashnFlows
C-4 Describe nandnillustrate nthenvaluationnofnfirm nequity. C-30 eC–4
DiscountednCashnFlownValuationn::nResidual nOperatingnIncomenVal
uationn::nAssessment
C-2
Financial Accounting for MBAs 8thEdition Easton
n n n n n n
Solutions Manual
n
,Appendix C
n
Comprehensive Case n
Reviewing nthe Assessing nProfitability Valuing
FinancialnStatements and nCreditworthiness Forecasting EquitynSecurities
■■nIncomen S tatement ■■nROEn Disaggregation Accounting
■■ nNumbers
nForecasting nAssum ■■nDiscountednCashn
■■nBalancenSheet ■■nRNOAnDisaggregati ptions FlownValuation
■■nOff-Balance- onnAnalysis ■■nForecastingnFinancial ■■nResidualnOperatin
SheetnItems ■■nDisaggregationnofn nStatements gnIncomenValuatio
MarginnandnTurnover n
■■nStatementnofnCashnFl
ows ■■n CreditnAnalysis
■■nAuditnOpinion
PREVIEW
This nappendix nconsistsnofnancomprehensivencasenthatnpresents nanfinancial naccountingnanalysis nandninterpretationn
ofnHarley-
Davidson’s nperformancenandnposition.nWenillustratenmany nofnthenkeynfinancialnreportingntopics ncoveredninnthenboo
k.nWenreviewnthencompany’s nfinancialnstatements nandnnotes,nforecastnkeynaccounts,nandnconcludenwithnestimates n
ofnHarley-Davidson’s nequity nvalue.
Harley-Davidson
Operatingn Cashn Flow Investingn Cashn Flow Financingn Cashn Flow Net n Incomen (Loss) Operatingn Cashn Flow Market n Cap
$14Bn n $1.4B $15B
2018
$13B
2017 $1.2B
$12B $13B
2016 $1.0
$11Bn n
2015 B
$11B
2014 $10Bn n $0.8
B
2013 $9B
$9B
$0.6B
2012
$8B
$0.4B $7B
2011
$7B
$6B $0.2B
2010
$5B $0.0B $5B
$(2.0)Bn n $(1.5)Bn n $(1.0)B $-0.5B $0.0B $0.5B $1.0B $1.5B 2010 2011 2012 2013 2014 2015 2016 2017 2018
CashnFlownbyn Type NetnIncome,n Opera ti n gnCas hn Flown an d nM arke tnCap
,C-1
, Road Map
n
LO Learning nObjectiven|nTopics Page eLecture
C-1 Explainnandnillustrate nanreview nofnfinancialnstatements na C-3 eC–1
ndntheir ncomponents.
IncomenStatementn::nBalancenSheetn::nStatementnofnCashnFlows n::n
AuditnOpinion
C-2 Assess ncompanynprofitabilitynandncreditworthiness. C-23 eC–2
ROEnDisaggregationn::nRNOAnDisaggregationn::nCreditnAnalysis
C-3 Forecastnfinancialnstatements. C-27 eC–3
IncomenStatementn::nBalancenSheetn::nStatementnofnCashnFlows
C-4 Describe nandnillustrate nthenvaluationnofnfirm nequity. C-30 eC–4
DiscountednCashnFlownValuationn::nResidual nOperatingnIncomenVal
uationn::nAssessment
C-2
