Solutions Manual
Financial Accounting for MBAs 8thEdition
Easton Solutions Manual
Net income: $752 mil
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■■ Discounted Cash
Flow
... [Show More] Valuation
■■ Residual Operating
Income Valuation
■■ Forecasting
Assumptions
■■ Forecasting Financial
Statements
■■ ROE Disaggregation
■■ RNOA
Disaggregation
Analysis
■■ Disaggregation of
Margin and Turnover
■■ Credit Analysis
■■ Income Statement
■■ Balance Sheet
■■ Off-Balance-Sheet
Items
■■ Statement of Cash
Flows
■■ Audit Opinion
Valuing
Equity Securities
Assessing Profitability
and Creditworthiness
Reviewing the
Financial Statements
Comprehensive Case
Forecasting
Accounting Numbers
Appendix C
Comprehensive Case
This appendix consists of a comprehensive case that presents a financial accounting analysis and interpretation of
Harley-Davidson’s performance and position. We illustrate many of the key financial reporting topics covered in the
book. We review the company’s financial statements and notes, forecast key accounts, and conclude with estimates
of Harley-Davidson’s equity value.
Harley-Davidson
Operating Cash Flow Investing Cash Flow Financing Cash Flow Net Income (Loss) Operating Cash Flow Market Cap
$14B $1.4B $15B
2018
$13B
2017 $1.2B
$12B $13B
2016
$11B $1.0B
2015
$10B $0.8B $11B
2014 $9B $0.6B
2013 $9B
$8B
2012 $0.4B
$7B $7B 2011 $6B $0.2B
2010
$(2.0)B $(1.5)B $(1.0)B $-0.5B $0.0B $0.5B $1.0B
$5B
$1.5B
$0.0B $5B
2010 2011 2012 2013 2014 2015 2016 2017 2018
Cash Flow by Type Net Income, Operating Cash Flow and Market Cap
C-1
Road Map
LO Learning Objective | Topics Page eLecture
C-1 Explain and illustrate a review of financial statements
and their components.
Income Statement :: Balance Sheet :: Statement of Cash Flows ::
Audit Opinion
C-3 eC–1
C-2 Assess company profitability and creditworthiness.
ROE Disaggregation :: RNOA Disaggregation :: Credit Analysis
C-23 eC–2
C-3 Forecast financial statements.
Income Statement :: Balance Sheet :: Statement of Cash Flows
C-27 eC–3
C-4 Describe and illustrate the valuation of firm equity.
Discounted Cash Flow Valuation :: Residual Operating Income
Valuation :: Assessment
C-30 eC–4 [Show Less]