Financial Accounting for MBAs 8thEdition
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Easton Solutions Manual
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,Appendix NC
Comprehensive Case N
ReviewingNthe AssessingNProfitabilit Valuing
FinancialNStatement yandNCreditworthines EquityNSecurities
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■■Accounting
N Forecasting
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Assump ■■N DiscountedN CashN
■■NIncomeNStatementN ■■N ROENDisaggregation tionsN FlowNValuationN
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■■N Off-Balance- lNStatementsN gNIncomeNValuatio
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■■N DisaggregationNofNM
■■N StatementNofNCashN
arginNandNTurnoverN
FlowsN
■■N CreditNAnalysisN
■■N AuditNOpinionN
PREVIEW
ThisNappendixNconsistsNofNaNcomprehensiveNcaseNthatNpresentsNaNfinancialNaccountingNanalysisNandNinterpretati
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Davidson’sNperformanceNandNposition.NWeNillustrateNmanyNofNtheNkeyNfinancialNreportingNtopicsNcoveredNinNtheN
book.NWeNreviewNtheNcompany’sNfinancialNstatementsNandNnotes,NforecastNkeyNaccounts,NandNconcludeNwithNesti
matesNofNHarley-Davidson’sNequityNvalue.N
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OperatingN CashN Flow InvestingN CashN Flow FinancingN CashN Flow NetN IncomeN (Loss) OperatingN CashN Flow MarketN CapN
$14BN N N $1.4B $15BN
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2017 N $13BN
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2016 $1
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2014 $9BN
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2013 N $7BN
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2011 $6B
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$1.0BN N N N N N N N N
CashNFlowNbyNType NetNIncome,NOperatingNCashNFlowNandNMarketNCap
,C-1
, Road Map
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LO LearningNObjectiveN|NTopics Page eLecture
C-1 ExplainNandNillustrateNaNreviewNofNfinancialNstatemen C-3N eC–1N
tsNandNtheirNcomponents.
IncomeNStatementN::NBalanceNSheetN::NStatementNofNCashNFlowsN
::NAuditNOpinionN
C-2 AssessNcompanyNprofitabilityNandNcreditworthiness. C-23N eC–2N
ROENDisaggregationN::NRNOANDisaggregationN::NCreditNAnalysisN
C-3 ForecastNfinancialNstatements. C-27N eC–3N
IncomeNStatementN::NBalanceNSheetN::NStatementNofNCashNFlowsN
C-4 DescribeNandNillustrateNtheNvaluationNofNfirmNequity. C-30N eC–4N
DiscountedNCashNFlowNValuationN::NResidualNOperatingNIncom
eNValuationN::NAssessmentN
C-2