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Analyzing and Interpreting Income Components and Disclosures The income statement for Xerox Corporation follows. Year ended December 31 (in millions) 2007 2006 2005 Revenues Sales

Analyzing and Interpreting Income Components and Disclosures The income statement for Xerox Corporation follows.

Year ended December 31 (in millions) 2007 2006 2005
Revenues
Sales $8,192 $7,464 $7,400
Service, outsourcing and rentals 8,214 7,591 7,426
Finance income 822 840 875
Total Revenues 17,228 15,895 15,701
Cost and expenses
Cost of sales 5,254 4,803 4,695
Cost of service, outsourcing and rentals 4,707 4,328 4,207
Equipment financing interest 316 305 326
Research, development, and engeineering expenses 912 922 943
Selling, administrative and general expenses 4,312 4,008 4,110
Restructuring and asset impairment charges (6) 385 366
Other expenses, net 295 336 224
Total Cost and Expenses 15,790 15,087 14,871
Income from Continuing Operations before Income Taxes, Equity Income, Discontinued Operations and Cumulative Effect of Change in Accounting Principle 1,438 808 830
Income tax expenses (benefits) 400 (288) (5)
Equity in net income of unconsolidated affiliates 97 114 98
Income from Continuing Operations before Discontinued Operations and Cumulative Effect of Change in Accounting Principle 1,135 1,210 933
Income from Discontinues Operations, net of tax -- -- 53
Cumulative Effect of Change in Accounting Principle, net of tax -- -- (8)
Net Income $1,135 $1,210 $978

(b) Compute the relative size of Sales revenue (total) and of revenue from Service, outsourcing and rentals. Hint: Scale each type of revenue by Total revenue.

Round percentage answers to one decimal place (ex: 0.2345 = 23.5%).

Revenue in $ millions As % of Total Revenue
2007 2006 2005 2007 2006 2005
Sales $___?
$___?
$___?
%__? %__? %__?
Service,outsourcingand rentals
$___?
$___?
$___?
%__? %__? %__?
TotalRevenues
$___?
$___?
$___?

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