Calculation of revenue from each activity, gross profit, income statement.
A recent income statement for Harley-Davidson is provided below.
|
Harley Davidson, Inc.
Consolidated Statements of Income
Years ended December 31,2004,2003, and 2002
|
|
|
2004
|
2003
|
2002
|
|
(in thousands, except per share amounts)
|
|
|
|
|
Net revenue
|
$5,015,190
|
$4,624,274
|
$4,090,970
|
|
costs of goods sold
|
3,115,655
|
2,958,708
|
2,673,129
|
|
Gross profit
|
1,899,535
|
1,665,566
|
1,417,841
|
|
Financial services income
|
305,262
|
279,459
|
211,500
|
|
Financial services expense
|
116,662
|
111,586
|
107,273
|
|
Operating income from financial services
|
188,600
|
167,873
|
104,227
|
|
Selling,adminstrative and engineering expense
|
726,644
|
684,175
|
639,366
|
|
Income from operations
|
1,361,491
|
1,149,264
|
882,702
|
|
Investment income, net
|
23,101
|
23,088
|
16,541
|
|
Other, net
|
(5106)
|
(6,317)
|
(13,416)
|
|
Income before provisions for income taxes
|
1,379,486
|
1,166,035
|
885,827
|
|
Provision for income taxes
|
489,720
|
405,107
|
305,610
|
|
Net income
|
$889,766
|
$760,928
|
$580,217
|
|
Basic earnings per common share
|
3.02
|
2.52
|
1.92
|
|
Diluted earnings per common share
|
3
|
2.5
|
1.9
|
|
Cash Dividends per common share
|
0.405
|
0.195
|
0.135
|
Use this financial statement to answer the following questions for 2004:
a.How much revenue did Harley-Davidson earn from selling motorcycles?
b.How much revenue did it earn from providing financial services?
c.How much revenue did it earn from non-operating activities?
d.What amount of gross profit did Harley-Davidson earn? Express your answer in both dollars and as a percentage of net revenue.
e.Approximately how many shares of stock did Harley-Davidson have outstanding during the year?
f.How much income from operations did Harley-Davidson earn during the year? Express your answer in both dollars and as a percentage of total revenues (net revenue from the sale of motorcycles plus financial services income).
g.Can the amount of cash Harley-Davidson received from its operating activities during the year be determined from the income statement? If so, what is the amount? If not, why not?