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www.nursylab.com Forecasting Accounting Numbers
■ ■Forecasting Assumptions
■ ■Forecasting Financial StatementsAssessing Profitability and Creditworthiness
■ ■ROE Disaggregation
■ ■RNOA Disaggregation Analysis
■ ■Disaggregation of Margin and Turnover
■ ■Credit AnalysisReviewing the Financial Statements
■ ■Income Statement
■ ■Balance Sheet
■ ■Off-Balance-Sheet Items
■ ■Statement of Cash Flows
■ ■Audit OpinionValuing Equity Securities
■ ■Discounted Cash Flow Valuation
■ ■Residual Operating Income ValuationComprehensive Case
C-1Comprehensive CaseAppendix C
Operating Cash Flow Investing Cash Flow Financing Cash Flow
Cash Flow by Type$5B$6B$7B$8B$9B$10B$11B$12B$13B$14B
$(2.0)B $(1.5)B $(1.0)B $-0.5B $0.0B $0.5B $1.0B $1.5B201020112012201320142015201620172018Harley-Davidson
$0.0B$0.2B$0.4B$0.6B$0.8B$1.0B$1.2B$1.4B
2018 2017 2016 2015 2014 2013 2012 2011 2010Net Income (Loss) Operating Cash Flow Market Cap
Net Income, Operating Cash Flow and Market Cap$5B$7B$9B$11B$13B$15B
2018 2017 2016 2015 2014 2013 2012 2011 2010Net Income (Loss) Operating Cash Flow Market Cap
Net Income, Operating Cash Flow and Market CapNet income: $752 milPREVIEW
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.www.nursylab.com
www.nursylab.com C-2Road 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 OpinionC-3 eC–1
C-2 Assess company profitability and creditworthiness. ROE Disaggregation :: RNOA Disaggregation :: Credit AnalysisC-23 eC–2
C-3 Forecast financial statements. Income Statement :: Balance Sheet :: Statement of Cash FlowsC-27 eC–3
C-4 Describe and illustrate the valuation of firm equity. Discounted Cash Flow Valuation :: Residual Operating Income Valuation :: AssessmentC-30 eC–4www.nursylab.com
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