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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 | $___? |
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| %__? | %__? | %__? | ||||
Service,outsourcingand rentals |
|
|
| %__? | %__? | %__? | ||||
TotalRevenues |
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