Hello Ruchi,

I hope you have been doing good!

I have attached the instructions word document and the excel workbook for part 5. This is the continuation from part 4. Please let me know if you have any questions.

Thanks and Best Regards.

INTUIT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS All numbers in thousands Revenue Total Revenue Operating Cost of Revenue Operating Gross Profit Operating Expenses Research Development Operating Selling General and Administrative Operating Non Recurring Operating Others Operating Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Non-operating Earnings Before Interest and Taxes Interest Expense Non-operating Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Earnings per share Basic Diluted Weighted average shares outstanding Basic Diluted EBITDA Divvidend declared per common Share Effective Tax Rate For the 2016 $ 4,694,000 730,000 3,964,000 881,000 1,807,000 0 34,000 2,722,000 1,242,000 -4,000 1,238,000 35,000 1,203,000 Operating & Non-operating 397,000 Operating & Non-operating 0 806,000 $ $ $ 173,000 0 0 0 979,000 0 979,000 3.73 3.69 262,000 265,000 $ 1,476,000 $ 1.20 33% For the Years Ended July, 31 Common Size 2015 Common Size 100.0% $ 15.6% 84.4% 4,192,000 695,000 3,497,000 2014 100.0% $ 16.6% 83.4% Common Size 4,243,000 603,000 3,640,000 100.0% 14.2% 85.8% 18.8% 38.5% 0.0% 0.7% 58.0% 26.5% 798,000 1,771,000 148,000 42,000 2,759,000 738,000 19.0% 42.2% 3.5% 1.0% 65.8% 17.6% 714,000 1,601,000 148,000 25,000 2,488,000 1,152,000 16.8% 37.7% 3.5% 0.6% 58.6% 27.2% -0.1% 26.4% 0.7% 25.6% 1,000 739,000 27,000 712,000 0.0% 17.6% 0.6% 17.0% 31,000 1,183,000 31,000 1,152,000 0.7% 27.9% 0.7% 27.2% 8.5% 299,000 7.1% 447,000 10.5% 0.0% 17.2% 0 413,000 0.0% 9.9% 0 705,000 0.0% 16.6% 3.7% 0.0% 0.0% 0.0% 20.9% 0.0% 20.9% $ -48,000 0 0 0 365,000 0 365,000 -1.1% 0.0% 0.0% 0.0% 8.7% 0.0% 8.7% $ 54,000 0 0 0 759,000 0 759,000 1.3% 0.0% 0.0% 0.0% 17.9% 0.0% 17.9% $ $ 1.30 1.28 $ $ 281,000 286,000 970,000 1.00 $ $ 3.18 3.12 285,000 291,000 $ 1,542,000 $ 0.76 35000 INTUIT, INC. CONSOLIDATED BALANCE SHEETS USD in thousands except per share data. Assets Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Deferred income taxes Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Other long-term liabilities Total non-current liabilities 2016 Non-operating Non-operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Non-operating Non-operating Operating Operating Operating Operating Operating Operating Operating Non-Operating Operating $ 638,000 442,000 1,080,000 108,000 102,000 324,000 1,614,000 2,240,000 (1,209,000) 1,031,000 28,000 1,282,000 44,000 139,000 112,000 2,497,000 4,250,000 512,000 184,000 300,000 1,255,000 2,251,000 488,000 204,000 146,000 838,000 Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 3,089,000 3,000 4,442,000 6,687,000 (9,939,000) (32,000) 1,161,000 4,250,000 For the Year Ended July, 31 Common Size 15.01% 10.40% 25.41% 2.54% 0.00% 2.40% 7.62% 37.98% 2015 $ Common Size 808,000 889,000 1,697,000 91,000 231,000 94,000 447,000 2,560,000 16.26% 17.89% 34.16% 1.83% 4.65% 1.89% 9.00% 51.53% 52.71% -28.45% 24.26% 0.66% 30.16% 1.04% 3.27% 2.64% 58.75% 100.00% 1,743,000 (1,061,000) 682,000 27,000 1,266,000 87,000 346,000 2,408,000 4,968,000 12.05% 4.33% 0.00% 7.06% 0.00% 29.53% 52.96% 11.48% 4.80% 3.44% 19.72% 2014 $ Common Size 2013 849,000 1,065,000 1,914,000 134,000 133,000 116,000 324,000 2,621,000 16.32% 20.48% 36.80% 2.58% 2.56% 2.23% 6.23% 50.39% $ 1,009,000 652,000 1,661,000 130,000 166,000 98,000 341,000 2,396,000 35.08% -21.36% 13.73% 0.54% 25.48% 1.75% 0.00% 6.96% 48.47% 100.00% 1,593,000 (987,000) 606,000 31,000 1,635,000 199,000 109,000 2,580,000 5,201,000 30.63% -18.98% 11.65% 0.60% 31.44% 3.83% 0.00% 2.10% 49.61% 100.00% 1,500,000 (945,000) 555,000 83,000 1,246,000 149,000 1,057,000 5,486,000 190,000 368,000 1,028,000 158,000 1,744,000 0.00% 3.82% 0.00% 7.41% 20.69% 3.18% 35.10% 161,000 351,000 526,000 383,000 1,421,000 0.00% 3.10% 0.00% 6.75% 10.11% 7.36% 27.32% 137,000 2,000 292,000 495,000 354,000 1,280,000 500,000 152,000 240,000 892,000 10.06% 3.06% 4.83% 17.95% 499,000 203,000 702,000 9.59% 0.00% 3.90% 13.50% 499,000 176,000 675,000 72.68% 2,636,000 53.06% 2,123,000 40.82% 1,955,000 0.07% 104.52% 157.34% -233.86% -0.75% 27.32% 100.00% 3,000 4,007,000 6,027,000 (7,675,000) (30,000) 2,332,000 4,968,000 0.06% 80.66% 121.32% -154.49% -0.60% 46.94% 100.00% 3,000 3,558,000 5,949,000 (6,430,000) (2,000) 3,078,000 5,201,000 0.06% 68.41% 114.38% -123.63% -0.04% 59.18% 100.00% 3,000 3,198,000 5,262,000 (4,952,000) 20,000 3,531,000 5,486,000 Common Size 18.39% 11.88% 30.28% 2.37% 3.03% 1.79% 6.22% 43.67% 27.34% -17.23% 10.12% 1.51% 22.71% 2.72% 0.00% 19.27% 0.00% 100.00% 0.00% 2.50% 0.04% 5.32% 9.02% 6.45% 23.33% 9.10% 0.00% 3.21% 12.30% 35.64% 0.05% 58.29% 95.92% -90.27% 0.36% 64.36% 100.00% INTUIT, INC. STATEMENT OF CASH FLOWS USD in thousands except per share data. Cash Flows From Operating Activities Net income Depreciation & amortization Investment/asset impairment charges Investments losses (gains) Deferred income taxes Stock based compensation Accounts receivable Prepaid expenses Accounts payable Accrued liabilities Income taxes payable Other working capital Other non-cash items Net cash provided by operating activities Cash Flows From Investing Activities Investments in property, plant, and equipment Acquisitions, net Purchases of investments Sales/Maturities of investments Purchases of intangibles Other investing activities Net cash used for investing activities Cash Flows From Financing Activities Debt issued Debt repayment Common stock issued Common stock repurchased Excess tax benefit from stock based compensation Dividend paid Other financing activities Net cash provided by (used for) financing activities Effect of exchange rate changes Net change in cash Cash at beginning of period Cash at end of period Free Cash Flow Operating cash flow Capital expenditure Free cash flow For the Years Ended 2016 $ 979,000 238,000 70,000 281,000 (20,000) (10,000) (23,000) 223,000 (337,000) $ 1,401,000 (416,000) 463,000 (934,000) 1,352,000 (94,000) 371,000 1,495,000 (995,000) (2,264,000) (318,000) 142,000 (1,940,000) (2,000) (170,000) 808,000 638,000 1,401,000 (522,000) 879,000 For the Years Ended July, 31 2015 2014 2013 $ 365,000 $ 907,000 $ 858,000 231,000 197,000 232,000 297,000 46,000 (21,000) (100,000) 93,000 13,000 257,000 204,000 195,000 24,000 (5,000) 12,000 22,000 (14,000) (42,000) 35,000 15,000 4,000 24,000 43,000 8,000 2,000 345,000 43,000 72,000 4,000 (16,000) (34,000) $ 1,504,000 $ 1,446,000 $ 1,366,000 (142,000) (95,000) (939,000) 1,095,000 (101,000) (182,000) (104,000) 554,000 (1,334,000) 939,000 (15,000) (89,000) (49,000) (129,000) 43,000 (869,000) 561,000 (14,000) (77,000) (485,000) 107,000 (1,245,000) 165,000 (1,577,000) 165,000 (292,000) (283,000) 84,000 (1,337,000) (26,000) (41,000) 849,000 808,000 (220,000) 81,000 (1,551,000) (6,000) (160,000) 1,009,000 849,000 (203,000) 68,000 (262,000) (3,000) 616,000 393,000 1,009,000 1,504,000 (261,000) 1,243,000 1,446,000 (201,000) 1,245,000 1,366,000 (209,000) 1,157,000 INTUIT, INC. CONSOLIDATED BALANCE SHEETS USD in thousands except per share data. Assets Current assets Receivables Deferred income taxes Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity 2016 Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Non-operating Non-operating Operating Operating Operating Operating Operating Operating Operating Operating 108,000 102,000 324,000 534,000 2,240,000 (1,209,000) 1,031,000 28,000 1,282,000 44,000 112,000 2,497,000 3,031,000 512,000 184,000 300,000 1,255,000 2,251,000 488,000 204,000 692,000 2,943,000 3,000 4,442,000 6,687,000 (9,939,000) (32,000) 1,161,000 Total liabilities and stockholders' equity 4,104,000 For the Year Ended July, 31 Common Size 3.56% 0.00% 3.37% 10.69% 17.62% 2015 91,000 231,000 94,000 447,000 863,000 Common Size 2014 Common Size 2013 2.78% 7.06% 2.87% 13.67% 26.38% 134,000 133,000 116,000 324,000 707,000 4.08% 4.05% 3.53% 9.86% 21.51% 130,000 166,000 98,000 341,000 735,000 73.90% -39.89% 34.02% 0.92% 42.30% 1.45% 0.00% 3.70% 82.38% 100.00% 1,743,000 (1,061,000) 682,000 27,000 1,266,000 87,000 346,000 2,408,000 3,271,000 53.29% -32.44% 20.85% 0.83% 38.70% 2.66% 0.00% 10.58% 73.62% 100.00% 1,593,000 (987,000) 606,000 31,000 1,635,000 199,000 109,000 2,580,000 3,287,000 48.46% -30.03% 18.44% 0.94% 49.74% 6.05% 0.00% 3.32% 78.49% 100.00% 1,500,000 (945,000) 555,000 83,000 1,246,000 149,000 1,057,000 3,825,000 16.89% 6.07% 0.00% 9.90% 0.00% 41.41% 74.27% 190,000 368,000 1,028,000 158,000 1,744,000 0.00% 5.81% 0.00% 11.25% 31.43% 4.83% 53.32% 161,000 351,000 526,000 383,000 1,421,000 0.00% 4.90% 0.00% 10.68% 16.00% 11.65% 43.23% 137,000 2,000 292,000 495,000 354,000 1,280,000 16.10% 6.73% 22.83% 97.10% 500,000 152,000 652,000 2,396,000 15.29% 4.65% 19.93% 73.25% 499,000 499,000 1,920,000 15.18% 0.00% 15.18% 58.41% 499,000 499,000 1,779,000 0.10% 146.55% 220.62% -327.91% -1.06% 38.30% 3,000 4,007,000 6,027,000 (7,675,000) (30,000) 2,332,000 0.09% 122.50% 184.26% -234.64% -0.92% 71.29% 3,000 3,558,000 5,949,000 (6,430,000) (2,000) 3,078,000 0.09% 108.24% 180.99% -195.62% -0.06% 93.64% 3,000 3,198,000 5,262,000 (4,952,000) 20,000 3,531,000 135.40% 4,728,000 144.54% 4,998,000 152.05% 5,310,000 Common Size 3.40% 4.34% 2.56% 8.92% 19.22% 39.22% -24.71% 14.51% 2.17% 32.58% 3.90% 0.00% 27.63% 0.00% 100.00% 0.00% 3.58% 0.05% 7.63% 12.94% 9.25% 33.46% 13.05% 0.00% 13.05% 46.51% 0.08% 83.61% 137.57% -129.46% 0.52% 92.31% 138.82% Part II - Financial Analysis of Intuit Inc. Past and Present A. Gross Profit Gross Profit / Revenues Indicates the relationship between net sales revenue and the cost of goods sold. B. C. Net Income from Continuing Operating Profit Operations / Net Sales Measures the operating income generated by each dollar of sales Earnings per Share Net Income - Preferred Dividends / Weighted Average Number of Shares Outstanding Measures net income earned on each share of common stock D. Effective Tax Rate Income Tax Expense / Pretax Income Measurement of a company's tax rate, which is calculated by comparing its income tax expense to its pretax income. E. Net Income / Average Stockholders' Return on Equity Equity Measures profitability of owners' investments F. Return on Assets Net Income / Average Total Assets Measures overall profitability of assets G. Profitability and Productivity of ROA i. Profit Margin Net Income / Revenue Measures net income generated by each dollar of revenue ii. Asset Turnover Revenue / Average Total Assets Measures how efficiently assets are used to generate sales H. Net Operating Profit After Income before income taxes - Tax on Taxes (NOPAT) Operating Profit Measure of profit that excludes the costs and tax benefits of debt financing. Tax on Operating Profit = Tax Expense + [Pretax Net Nonoperating Expense x Statutory Tax Rate] Assumed a Statutory Tax Rate of 37% I. J. Operating Assets - Operating Net Operating Assets (NOA) Liabilities Measures the operating assets of a business directly related to its operationing liabilities Return on Net Operating Assets (RNOA) i. Net Operating Profit Margin (NOPM) NOPAT / Average NOA NOPAT / Revenues Measures how much operating profit the company earns from each sales dollar. ii. Net Operating Asset Turnover (NOAT) Revenues / Average NOA Measures the productivity of the company's net operating assets. K. L. Net Non-operating Expense (NNE) NOPAT - Consolidated Net Income Measures non-operating expenses and revenues, net of tax Net Non-operating Obligations (NNO) Non-operating Liabilities - Nonoperating Assets Measures the excess of interest-bearing debt over investments in nonoperating assets. M. Financial Leverage (FLEV) Average NNO / Average Total Stockholders' Equity The ratio of the nonoperating obligations to the average stockholders' equity N. Spread Return on net operating assets percent - net nonoperating expense percent The difference between the return on net operating assets and net nonoperating expense percent O. Non-operating Return FLEV x Spread The product of the financial leverage and the Spread P. Working Capital Current Assets - Current Liabilities The operating liquidity (or deficit) of the company to meet obligations Q. Credit Risk Ratios (Earnings before tax & Interest i. Times Interest expense) / Interest Expense The operating income available to pay interest expense ii. EBITDA coverage (Earnings before tax + Interest expense + Depreciation + Amortization) / Interest Expense A non-GAAP calculation used to determine to demonstrate the company has more cash to cover fixed debt charges (since depreciation and amortization are non-cash items) iii. Cash from Operations to Cash from Operations / (Short-term Total Debt debt + Long-term debt)as they The company's ability to generate cash to make debt payments are due iv. Current ratio Current assets / Current liabilties Current assets that can be turned into cash within one year to pay for current liabilities v. Quick ratio (Cash + Marketable securities + Accounts receivable) / Current liabilties Current assets that can quickly be turned into cash to pay for current liabilities vi. Debt to equity ratio (Total long-term debt including current portion + Short-term debt) / Stockholders' equity The ratio of the companies abilitity to repay debt with the equity of the company (assumes current liabitilies are paid by current operations) R. Accounts receivable turnover (ART) Revenue / Average Accounts Receivable (gross) The number of times per year the accounts receivable turns over S. Average sales outstanding Accounts Receivable (gross) / Average daily sales The number of times per year the accounts receivable is collected T. Accounts payable turnover Cost of Goods Sold / Average (APT) Accounts Payable The number of times per year the accounts payable turns over U. A/P days outstanding Accounts Payable / Average Daily Cost of Goods Sold Average number of days its takes the company to its outstanding accounts payable V. Free cash flow (FCF) Cash Provided by Operations - Capital Expenditures - Cash Dividends Companies ability to repay debt from the cash flows after any capital expenditures and cash dividends 2016 2015 2014 Gross Profit $ 3,964,000 $ 3,497,000 $ 3,640,000 Revenues $ 4,694,000 $ 4,192,000 $ 4,243,000 Net Income from Continuing Operations $ Revenue $ 1,242,000 $ 4,694,000 $ 738,000 $ 4,192,000 $ 1,152,000 4,243,000 979,000 $ 365,000 $ 759,000 Net Income - Preferred Dividends $ Weighted Average Number of Shares Outstanding (in thousands) 262,000.0 281,000.0 285,000.0 Income Tax Expense $ 397,000 $ 299,000 $ 447,000 Pretax Income $ 1,203,000 $ 712,000 $ 1,152,000 Net Income Average Stockholders' Equity $ $ 979,000 $ 1,746,500 $ 365,000 $ 2,705,000 $ 759,000 3,304,500 Net Income Average Total Assets $ $ 979,000 $ 4,609,000 $ 365,000 $ 5,084,500 $ 759,000 5,343,500 Net Income Revenue $ $ 979,000 $ 4,694,000 $ 365,000 $ 4,192,000 $ 759,000 4,243,000 Revenue Average Total Assets $ $ 4,694,000 $ 4,609,000 $ 4,192,000 $ 5,084,500 $ 4,243,000 5,343,500 Income before income taxes Tax on Operating Profit $ $ 1,203,000 $ 409,870 $ 712,000 $ 307,580 $ 1,152,000 447,000 erating Expense x Statutory Tax Rate] Operating Assets $ 5,667,000 $ 5,679,000 $ 5,867,000 Operating Liabilities $ 3,085,000 $ 3,098,000 $ 2,461,000 NOPAT Average NOA $ $ 793,130 $ 2,581,500 $ 404,420 $ 2,993,500 $ 705,000 3,131,167 NOPAT $ 793,130 $ 404,420 $ 705,000 Revenues $ 4,694,000 $ 4,192,000 $ 4,243,000 Revenues $ 4,694,000 $ 4,192,000 $ 4,243,000 Average NOA $ 2,581,500 $ 2,993,500 $ 3,131,167 NOPAT Consolidated Net Income $ $ 793,130 $ 979,000 $ 404,420 $ 365,000 $ 705,000 759,000 Non-operating Liabilities Non-operating Assets $ $ 842,000 $ 1,080,000 $ 430,000 $ 1,697,000 $ 364,000 1,914,000 Average NNO $ Average Total Stockholders' Equity $ (752,500) $ (1,408,500) $ (1,284,167) 1,746,500 $ 2,705,000 $ 3,304,500 RNOA 30.7% 13.5% 22.5% NNEP (NNE / Average NNO) 24.7% -2.8% 4.2% (0.43) 6.0% (0.52) 16.3% (0.39) 18.3% FLEV Spread Current Assets $ 1,614,000 $ 2,560,000 $ 2,621,000 Current Liabilities $ 2,251,000 $ 1,744,000 $ 1,421,000 Earnings before tax + Interest expense $ Interest Expense $ 1,238,000 $ 35,000 $ 739,000 $ 27,000 $ 1,183,000 31,000 1,476,000 970,000 1,542,000 35,000 27,000 31,000 Earnings before tax + Interest expense + Depreciation + Amortization Interest Expense Cash from Operations Short-term debt + Long-term Debt $ $ 1,401,000 $ 1,000,000 $ 1,504,000 $ 500,000 $ 1,446,000 499,000 Current assets $ 1,614,000 $ 2,560,000 $ 2,621,000 Current liabilties $ 2,251,000 $ 1,744,000 $ 1,421,000 (Cash + Marketable securities + Accounts receivable) $ 1,188,000 $ 1,788,000 $ 2,048,000 Current liabilities $ 2,251,000 $ 1,744,000 $ 1,421,000 (Total long-term debt including current portion + Short-term debt) $ 1,000,000 $ 500,000 $ 499,000 Stockholders' equity $ 1,161,000 $ 2,332,000 $ 3,078,000 Revenue $ 4,694,000 $ 4,192,000 $ 4,243,000 Average Accounts receivable (gross) $ 99,500 $ 112,500 $ 132,000 Accounts receivable (gross) $ 108,000 $ 91,000 $ 134,000 Average daily sales $ 12,860.3 $ 11,484.9 $ 11,624.7 Cost of Goods Sold Average Accounts Payable $ $ 730,000 $ 187,000 $ 695,000 $ 175,500 $ 603,000 149,000 Accounts Payable $ 184,000 $ 190,000 $ 161,000 Average Daily Cost of Goods Sold $ 2,000.0 $ 1,904.1 $ 1,652.1 Cash Provided by Operations Capital Expenditures Cash Dividends $ $ $ 1,401,000 $ (416,000) $ (318,000) $ 1,504,000 $ (142,000) $ (283,000) $ 1,446,000 (104,000) (220,000) $ 2016 2015 2014 Intuit Inc. 3 year Average 84.4% 83.4% 85.8% 84.6% 26.5% 17.6% 27.2% 23.7% 3.74 1.30 2.66 2.57 33.0% 42.0% 38.8% 37.9% 56.1% 13.5% 23.0% 30.8% 21.2% 7.2% 14.2% 14.2% 20.9% 8.7% 17.9% 15.8% 1.0 0.8 0.8 0.9 793,130 $ 404,420 $ 705,000 $ 634,183 $ 2,582,000 $ 2,581,000 $ 3,406,000 $ 2,856,333 30.7% 13.5% 22.5% 22.2% 16.9% 9.6% 16.6% 14.4% $ 1.82 $ 1.40 $ 1.36 $ 1.52 $ (185,870.0) $ 39,420.0 $ (54,000.0) $ (66,816.7) $ (238,000) $ (1,267,000) $ (1,550,000) $ (1,018,333) (0.43) (0.52) (0.39) (0.45) 6.0% 16.3% 18.3% 13.5% -2.6% -8.5% -7.1% -6.1% $ (637,000) $ 816,000 $ 1,200,000 $ 459,667 35.4 27.4 38.2 33.6 42.2 35.9 49.7 42.6 1.4 3.0 2.9 2.4 0.7 1.5 1.8 1.3 0.5 1.0 1.4 1.0 0.9 0.2 0.2 0.4 47.2 37.3 32.1 38.9 $ 8.4 7.9 11.5 9.3 3.9 4.0 4.0 4.0 92.0 99.8 97.5 96.4 667,000 $ 1,079,000 $ 1,122,000 $ 956,000 Part III - Financial Analysis - Normalizations and Adjustments (Note: This file is a table in my FinancialAnalysis Excel File) 1. REVENUE RECOGNITION The company recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an ar the product or performed the service, the fee is fixed or determinable, and collectibility is probable. Estimates and assu criteria has been satisfied to reognize revenue. 2. RESEARCH AND DEVELOPMENT a. Intuit treats research and development cost as an operating expense. There does not seem any requirement to make any adjustment in research and development cost. 3. DEFERRED TAX ASSETS AND LIABILITITES a. Deferred tax on assets has shown a mixed trend. It was higher in fiscal years 2013 and 2015 whereas was lower durin (Thousands) 2016 2015 2014 Net Deferred Tax Asset in 10-K (Note 9) $ 132,000 $ 186,000 $ 72,000 % Change -29.03% 158.33% -57.65% Average % Change 23.88% % Difference in 2016 -52.92% Adjustment Calclulation Net Deferred Tax Asset in 10-K % Difference in 2016 2016 Adjustment $ $ 132,000 -52.92% (69,850) 2016 Adjustment Debit Income tax expense (and adjustment to Retained Earnings) $ Deferred income taxes and other assets Adjusted Net Deferred Tax Asset Net Deferred Tax Asset in 10-K 2015 Adjustment Adjusted Net Deferred Tax Asset $ $ $ Credit (69,850) $ (69,850) 2016 132,000 69,850 201,850 5. DISCONTINUED OPERATIONS 2016 Income from Discontinued Operations 10-K (Note 7) % Change Average % Change % Difference in 2016 $ 173,000 $ -460.42% -198.34% -262.08% (Thousands) 2015 (48,000) $ -188.89% 2014 54,000 54.29% Adjustment Calclulation Net Deferred Tax Asset in 10-K % Difference in 2016 2016 Adjustment $ $ 173,000 -262.08% (453,393) 6. EXTRAORDINARY ITEMS No extraorinary items were found. 7. FOREIGN CURRENCY - adjustments as reported on the Cash Flow Statement (millions) 8. ACCOUNTS RECEIVABLE Accounts Receivable Turnover Ratio has shown growth trend over past three years which gives an indication that no adjustm Outstanding has also shown improvement as the ratio has shown a constant decrease which is considered good. So no adjus 9. INVENTORY The company does not have any inventory thus no adjustment is needed 10. DEPRECIATION a. Intuit, Inc. uses straight line method of depreciation of 2 to 30 years for property and equipment and 2 to 15 years fo recorded any impairment charges during 2014, 2015 and 2016. b. Adjustments if necessary Estimated Useful Life Property, plant and equipment costs Plus: Capitalized Leases (from # 15 below) Total Property, plant and equipment costs Depreciation Expense Plus: Capitalized Lease Depreciation (from # 15 below) Total Adjusted Depreciation Expense Average useful life 2,240,000 2,240,000 238,000 238,000 9.41 11. ASSET IMPAIRMENTS There was no impairment during fiscal years 2016, 2015 and 2014. So no impairment is recorded. 12. PERCENTAGE USED UP Percent used up Accumulated depreciation from Note 3 Additional 3 years depreciation for Capital Leases Total Adjusted Accumumlated Depreciation Depreciable Asset Cost (from # 10 above) 1,209,000 1,209,000 2,240,000 Percent Used Up 53.97% 13. CONTINGENT LIABILITIES (Understand) There are no contingent liabilities reported in the Form 10-K of Intuit, Inc. et: persuasive evidence of an arrangement exists, we have delivered s probable. Estimates and assumptions are used to determine if the ment cost. 2015 whereas was lower during fiscal years 2014 and 2016. $ 2013 170,000 Income Statement Balance Sheet and Cash Flow 2013 $ 35,000 s an indication that no adjustment is needed. The Average Sales s considered good. So no adjustment is made in it. equipment and 2 to 15 years for machinery. The company has not INTUIT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS All numbers in thousands Revenue Total Revenue Operating Cost of Revenue Operating Gross Profit Operating Expenses Research Development Operating Selling General and Administrative Operating Non Recurring Operating Others Operating Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Non-operating Earnings Before Interest and Taxes Interest Expense Non-operating Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 2016 $ 881,000 1,807,000 0 34,000 2,722,000 1,242,000 -4,000 1,238,000 35,000 1,203,000 Operating & Non-operating 397,000 Operating & Non-operating 0 806,000 $ Income before income taxes Adjusted Income before income taxes Less: Adjustment for Foreign Currency Transaction Difference to record to retained earnings -280,393 0 0 0 525,607 0 525,607 979,000 525,607 453,393 Unadjusted Income tax expense Adjusted Net Income Difference to record to Income tax payable Basic Diluted Weighted average shares outstanding 4,694,000 730,000 3,964,000 397,000 525,607 (128,607) $ $ 3.73 3.69 Basic Diluted EBITDA Divvidend declared per common Share Effective Tax Rate 262,000 265,000 $ 1,476,000 $ 1.20 33% For the Years Ended July, 31 Common Size 2015 Common Size 100.0% $ 15.6% 84.4% 4,192,000 695,000 3,497,000 2014 100.0% $ 16.6% 83.4% Common Size 4,243,000 603,000 3,640,000 100.0% 14.2% 85.8% 18.8% 38.5% 0.0% 0.7% 58.0% 26.5% 798,000 1,771,000 148,000 42,000 2,759,000 738,000 19.0% 42.2% 3.5% 1.0% 65.8% 17.6% 714,000 1,601,000 148,000 25,000 2,488,000 1,152,000 16.8% 37.7% 3.5% 0.6% 58.6% 27.2% -0.1% 26.4% 0.7% 25.6% 1,000 739,000 27,000 712,000 0.0% 17.6% 0.6% 17.0% 31,000 1,183,000 31,000 1,152,000 0.7% 27.9% 0.7% 27.2% 8.5% 299,000 7.1% 447,000 10.5% 0.0% 17.2% 0 413,000 0.0% 9.9% 0 705,000 0.0% 16.6% -6.0% 0.0% 0.0% 0.0% 11.2% 0.0% 11.2% $ -48,000 0 0 0 365,000 0 365,000 -1.1% 0.0% 0.0% 0.0% 8.7% 0.0% 8.7% $ 54,000 0 0 0 759,000 0 759,000 1.3% 0.0% 0.0% 0.0% 17.9% 0.0% 17.9% $ $ 365,000 365,000 - 759,000 759,000 - 299,000 365,000 (66,000) 447,000 759,000 (312,000) 1.30 1.28 $ $ 3.18 3.12 35000 $ $ 281,000 286,000 970,000 1.00 285,000 291,000 $ 1,542,000 $ 0.76 INTUIT, INC. CONSOLIDATED BALANCE SHEETS USD in thousands except per share data. Assets Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Deferred income taxes Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock 2016 Non-operating Non-operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Non-operating Non-operating Operating Operating Operating Operating Operating Operating Operating Non-Operating Operating $ 638,000 442,000 1,080,000 108,000 (69,850) 102,000 324,000 1,544,150 2,240,000 (1,209,000) 1,031,000 28,000 1,282,000 44,000 139,000 112,000 2,497,000 4,180,150 512,000 184,000 300,000 1,255,000 2,251,000 488,000 204,000 146,000 838,000 3,089,000 3,000 Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 4,442,000 6,617,150 (9,939,000) (32,000) 1,091,150 4,180,150 For the Year Ended July, 31 Common Size 15.26% 10.57% 25.84% 2.58% -1.67% 2.44% 7.75% 36.94% 2015 808,000 889,000 1,697,000 91,000 231,000 94,000 447,000 2,560,000 16.26% 17.89% 34.16% 1.83% 4.65% 1.89% 9.00% 51.53% 53.59% -28.92% 24.66% 0.67% 30.67% 1.05% 3.33% 2.68% 59.73% 100.00% 1,743,000 (1,061,000) 682,000 27,000 1,266,000 87,000 346,000 2,408,000 4,968,000 12.25% 4.40% 0.00% 7.18% 0.00% 30.02% 53.85% 11.67% 4.88% 3.49% 20.05% 73.90% 0.07% $ Common Size 2014 2013 849,000 1,065,000 1,914,000 134,000 133,000 116,000 324,000 2,621,000 16.32% 20.48% 36.80% 2.58% 2.56% 2.23% 6.23% 50.39% 35.08% -21.36% 13.73% 0.54% 25.48% 1.75% 0.00% 6.96% 48.47% 100.00% 1,593,000 (987,000) 606,000 31,000 1,635,000 199,000 109,000 2,580,000 5,201,000 30.63% -18.98% 11.65% 0.60% 31.44% 3.83% 0.00% 2.10% 49.61% 100.00% 1,500,000 (945,000) 555,000 83,000 1,246,000 149,000 1,057,000 5,486,000 190,000 368,000 1,028,000 158,000 1,744,000 0.00% 3.82% 0.00% 7.41% 20.69% 3.18% 35.10% 161,000 351,000 526,000 383,000 1,421,000 0.00% 3.10% 0.00% 6.75% 10.11% 7.36% 27.32% 137,000 2,000 292,000 495,000 354,000 1,280,000 500,000 152,000 240,000 892,000 2,636,000 10.06% 3.06% 4.83% 17.95% 53.06% 499,000 203,000 702,000 2,123,000 9.59% 0.00% 3.90% 13.50% 40.82% 499,000 176,000 675,000 1,955,000 3,000 0.06% $ Common Size 3,000 0.06% $ 1,009,000 652,000 1,661,000 130,000 166,000 98,000 341,000 2,396,000 3,000 106.26% 158.30% -237.77% -0.77% 26.10% 100.00% 4,007,000 6,027,000 (7,675,000) (30,000) 2,332,000 4,968,000 80.66% 121.32% -154.49% -0.60% 46.94% 100.00% 3,558,000 5,949,000 (6,430,000) (2,000) 3,078,000 5,201,000 68.41% 114.38% -123.63% -0.04% 59.18% 100.00% 3,198,000 5,262,000 (4,952,000) 20,000 3,531,000 5,486,000 Common Size 18.39% 11.88% 30.28% 2.37% 3.03% 1.79% 6.22% 43.67% 27.34% -17.23% 10.12% 1.51% 22.71% 2.72% 0.00% 19.27% 0.00% 100.00% 0.00% 2.50% 0.04% 5.32% 9.02% 6.45% 23.33% 9.10% 0.00% 3.21% 12.30% 35.64% 0.05% 58.29% 95.92% -90.27% 0.36% 64.36% 100.00% INTUIT, INC. STATEMENT OF CASH FLOWS USD in thousands except per share data. Cash Flows From Operating Activities Net income Depreciation & amortization Investment/asset impairment charges Investments losses (gains) Deferred income taxes Stock based compensation Accounts receivable Prepaid expenses Accounts payable Accrued liabilities Income taxes payable Other working capital Other non-cash items Net cash provided by operating activities Cash Flows From Investing Activities Investments in property, plant, and equipment Acquisitions, net Purchases of investments Sales/Maturities of investments Purchases of intangibles Other investing activities Net cash used for investing activities Cash Flows From Financing Activities Debt issued Debt repayment Common stock issued Common stock repurchased Excess tax benefit from stock based compensation Dividend paid Other financing activities Net cash provided by (used for) financing activities Effect of exchange rate changes Net change in cash Cash at beginning of period Cash at end of period Free Cash Flow Operating cash flow Capital expenditure Free cash flow For the Years Ended 2016 $ 979,000 238,000 150 281,000 (20,000) (10,000) (23,000) 223,000 (337,000) $ 1,331,150 (416,000) 463,000 (934,000) 1,352,000 (94,000) 371,000 1,495,000 (995,000) (2,264,000) (318,000) 142,000 (1,940,000) (2,000) (170,000) 808,000 638,000 1,401,000 (522,000) 879,000 For the Years Ended July, 31 2015 2014 2013 $ 365,000 $ 907,000 $ 858,000 231,000 197,000 232,000 297,000 46,000 (21,000) (100,000) 93,000 13,000 257,000 204,000 195,000 24,000 (5,000) 12,000 22,000 (14,000) (42,000) 35,000 15,000 4,000 24,000 43,000 8,000 2,000 345,000 43,000 72,000 4,000 (16,000) (34,000) $ 1,504,000 $ 1,446,000 $ 1,366,000 (142,000) (95,000) (939,000) 1,095,000 (101,000) (182,000) (104,000) 554,000 (1,334,000) 939,000 (15,000) (89,000) (49,000) (129,000) 43,000 (869,000) 561,000 (14,000) (77,000) (485,000) 107,000 (1,245,000) (283,000) 84,000 (1,337,000) (26,000) (41,000) 849,000 808,000 165,000 (1,577,000) (220,000) 81,000 (1,551,000) (6,000) (160,000) 1,009,000 849,000 165,000 (292,000) (203,000) 68,000 (262,000) (3,000) 616,000 393,000 1,009,000 1,504,000 (261,000) 1,243,000 1,446,000 (201,000) 1,245,000 1,366,000 (209,000) 1,157,000 INTUIT, INC. CONSOLIDATED BALANCE SHEETS USD in thousands except per share data. Assets Current assets Receivables Deferred income taxes Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity 2016 Operating Operating Operating Operating 108,000 (69,850) 102,000 324,000 464,150 Operating Operating Operating Operating Operating Operating 2,240,000 (1,209,000) 1,031,000 28,000 1,282,000 44,000 112,000 2,497,000 2,961,150 Operating Operating Non-operating Non-operating Operating Operating Operating Operating Operating Operating Operating Operating 512,000 184,000 300,000 1,255,000 2,251,000 488,000 204,000 692,000 2,943,000 3,000 4,442,000 6,687,000 (9,939,000) (32,000) 1,161,000 Total liabilities and stockholders' equity 4,104,000 For the Year Ended July, 31 Common Size 3.65% -2.36% 3.44% 10.94% 15.67% 2015 91,000 231,000 94,000 447,000 863,000 Common Size 2014 Common Size 2013 2.78% 7.06% 2.87% 13.67% 26.38% 134,000 133,000 116,000 324,000 707,000 4.08% 4.05% 3.53% 9.86% 21.51% 130,000 166,000 98,000 341,000 735,000 75.65% -40.83% 34.82% 0.95% 43.29% 1.49% 0.00% 3.78% 84.33% 100.00% 1,743,000 (1,061,000) 682,000 27,000 1,266,000 87,000 346,000 2,408,000 3,271,000 53.29% -32.44% 20.85% 0.83% 38.70% 2.66% 0.00% 10.58% 73.62% 100.00% 1,593,000 (987,000) 606,000 31,000 1,635,000 199,000 109,000 2,580,000 3,287,000 48.46% -30.03% 18.44% 0.94% 49.74% 6.05% 0.00% 3.32% 78.49% 100.00% 1,500,000 (945,000) 555,000 83,000 1,246,000 149,000 1,057,000 3,825,000 17.29% 6.21% 0.00% 10.13% 0.00% 42.38% 76.02% 190,000 368,000 1,028,000 158,000 1,744,000 0.00% 5.81% 0.00% 11.25% 31.43% 4.83% 53.32% 161,000 351,000 526,000 383,000 1,421,000 0.00% 4.90% 0.00% 10.68% 16.00% 11.65% 43.23% 137,000 2,000 292,000 495,000 354,000 1,280,000 16.48% 6.89% 23.37% 99.39% 500,000 152,000 652,000 2,396,000 15.29% 4.65% 19.93% 73.25% 499,000 499,000 1,920,000 15.18% 0.00% 15.18% 58.41% 499,000 499,000 1,779,000 0.10% 150.01% 225.82% -335.65% -1.08% 39.21% 3,000 4,007,000 6,027,000 (7,675,000) (30,000) 2,332,000 0.09% 122.50% 184.26% -234.64% -0.92% 71.29% 3,000 3,558,000 5,949,000 (6,430,000) (2,000) 3,078,000 0.09% 108.24% 180.99% -195.62% -0.06% 93.64% 3,000 3,198,000 5,262,000 (4,952,000) 20,000 3,531,000 138.59% 4,728,000 144.54% 4,998,000 152.05% 5,310,000 Common Size 3.40% 4.34% 2.56% 8.92% 19.22% 39.22% -24.71% 14.51% 2.17% 32.58% 3.90% 0.00% 27.63% 0.00% 100.00% 0.00% 3.58% 0.05% 7.63% 12.94% 9.25% 33.46% 13.05% 0.00% 13.05% 46.51% 0.08% 83.61% 137.57% -129.46% 0.52% 92.31% 138.82% Part II - Financial Analysis of Intuit Inc. Past and Present A. Gross Profit Gross Profit / Revenues Indicates the relationship between net sales revenue and the cost of goods sold. B. C. Net Income from Continuing Operating Profit Operations / Net Sales Measures the operating income generated by each dollar of sales Earnings per Share Net Income - Preferred Dividends / Weighted Average Number of Shares Outstanding Measures net income earned on each share of common stock D. Effective Tax Rate Income Tax Expense / Pretax Income Measurement of a company's tax rate, which is calculated by comparing its income tax expense to its pretax income. E. Net Income / Average Stockholders' Return on Equity Equity Measures profitability of owners' investments F. Return on Assets Net Income / Average Total Assets Measures overall profitability of assets G. Profitability and Productivity of ROA i. Profit Margin Net Income / Revenue Measures net income generated by each dollar of revenue ii. Asset Turnover Revenue / Average Total Assets Measures how efficiently assets are used to generate sales H. Net Operating Profit After Income before income taxes - Tax on Taxes (NOPAT) Operating Profit Measure of profit that excludes the costs and tax benefits of debt financing. Tax on Operating Profit = Tax Expense + [Pretax Net Nonoperating Expense x Statutory Tax Rate] Assumed a Statutory Tax Rate of 37% I. J. Operating Assets - Operating Net Operating Assets (NOA) Liabilities Measures the operating assets of a business directly related to its operationing liabilities Return on Net Operating Assets (RNOA) i. Net Operating Profit Margin (NOPM) NOPAT / Average NOA NOPAT / Revenues Measures how much operating profit the company earns from each sales dollar. ii. Net Operating Asset Turnover (NOAT) Revenues / Average NOA Measures the productivity of the company's net operating assets. K. L. Net Non-operating Expense (NNE) NOPAT - Consolidated Net Income Measures non-operating expenses and revenues, net of tax Net Non-operating Obligations (NNO) Non-operating Liabilities - Nonoperating Assets Measures the excess of interest-bearing debt over investments in nonoperating assets. M. Financial Leverage (FLEV) Average NNO / Average Total Stockholders' Equity The ratio of the nonoperating obligations to the average stockholders' equity N. Spread Return on net operating assets percent - net nonoperating expense percent The difference between the return on net operating assets and net nonoperating expense percent O. Non-operating Return FLEV x Spread The product of the financial leverage and the Spread P. Working Capital Current Assets - Current Liabilities The operating liquidity (or deficit) of the company to meet obligations Q. Credit Risk Ratios (Earnings before tax & Interest i. Times Interest expense) / Interest Expense The operating income available to pay interest expense ii. EBITDA coverage (Earnings before tax + Interest expense + Depreciation + Amortization) / Interest Expense A non-GAAP calculation used to determine to demonstrate the company has more cash to cover fixed debt charges (since depreciation and amortization are non-cash items) iii. Cash from Operations to Cash from Operations / (Short-term Total Debt debt + Long-term debt)as they The company's ability to generate cash to make debt payments are due iv. Current ratio Current assets / Current liabilties Current assets that can be turned into cash within one year to pay for current liabilities v. Quick ratio (Cash + Marketable securities + Accounts receivable) / Current liabilties Current assets that can quickly be turned into cash to pay for current liabilities vi. Debt to equity ratio (Total long-term debt including current portion + Short-term debt) / Stockholders' equity The ratio of the companies abilitity to repay debt with the equity of the company (assumes current liabitilies are paid by current operations) R. Accounts receivable turnover (ART) Revenue / Average Accounts Receivable (gross) The number of times per year the accounts receivable turns over S. Average sales outstanding Accounts Receivable (gross) / Average daily sales The number of times per year the accounts receivable is collected T. Accounts payable turnover Cost of Goods Sold / Average (APT) Accounts Payable The number of times per year the accounts payable turns over U. A/P days outstanding Accounts Payable / Average Daily Cost of Goods Sold Average number of days its takes the company to its outstanding accounts payable V. Free cash flow (FCF) Cash Provided by Operations - Capital Expenditures - Cash Dividends Companies ability to repay debt from the cash flows after any capital expenditures and cash dividends 2016 2015 2014 Gross Profit $ 3,964,000 $ 3,497,000 $ 3,640,000 Revenues $ 4,694,000 $ 4,192,000 $ 4,243,000 Net Income from Continuing Operations $ Revenue $ 1,242,000 $ 4,694,000 $ 738,000 $ 4,192,000 $ 1,152,000 4,243,000 525,607 $ 365,000 $ 759,000 Net Income - Preferred Dividends $ Weighted Average Number of Shares Outstanding (in thousands) 262,000.0 281,000.0 285,000.0 Income Tax Expense $ 397,000 $ 299,000 $ 447,000 Pretax Income $ 1,203,000 $ 712,000 $ 1,152,000 Net Income Average Stockholders' Equity $ $ 525,607 $ 1,711,575 $ 365,000 $ 2,705,000 $ 759,000 3,304,500 Net Income Average Total Assets $ $ 525,607 $ 4,574,075 $ 365,000 $ 5,084,500 $ 759,000 5,343,500 Net Income Revenue $ $ 525,607 $ 4,694,000 $ 365,000 $ 4,192,000 $ 759,000 4,243,000 Revenue Average Total Assets $ $ 4,694,000 $ 4,574,075 $ 4,192,000 $ 5,084,500 $ 4,243,000 5,343,500 Income before income taxes Tax on Operating Profit $ $ 1,203,000 $ 409,870 $ 712,000 $ 307,580 $ 1,152,000 447,000 erating Expense x Statutory Tax Rate] Operating Assets $ 6,628,150 $ 6,361,000 $ 6,473,000 Operating Liabilities $ 3,085,000 $ 3,098,000 $ 2,461,000 NOPAT Average NOA $ $ 793,130 $ 3,403,075 $ 404,420 $ 3,637,500 $ 705,000 3,809,025 NOPAT $ 793,130 $ 404,420 $ 705,000 Revenues $ 4,694,000 $ 4,192,000 $ 4,243,000 Revenues $ 4,694,000 $ 4,192,000 $ 4,243,000 Average NOA $ 3,403,075 $ 3,637,500 $ 3,809,025 NOPAT Consolidated Net Income $ $ 793,130 $ 525,607 $ 404,420 $ 365,000 $ 705,000 759,000 Non-operating Liabilities Non-operating Assets $ $ 842,000 $ 1,080,000 $ 430,000 $ 1,697,000 $ 364,000 1,914,000 Average NNO $ (752,500) $ (1,408,500) $ (1,284,167) Average Total Stockholders' Equity $ 1,711,575 $ 2,705,000 $ 3,304,500 RNOA 23.3% 11.1% 18.5% NNEP (NNE / Average NNO) -35.6% -2.8% 4.2% (0.44) 58.9% (0.52) 13.9% (0.39) 14.3% FLEV Spread Current Assets $ 1,544,150 $ 2,560,000 $ 2,621,000 Current Liabilities $ 2,251,000 $ 1,744,000 $ 1,421,000 Earnings before tax + Interest expense $ Interest Expense $ 1,238,000 $ 35,000 $ 739,000 $ 27,000 $ 1,183,000 31,000 Earnings before tax + Interest expense + Depreciation + Amortization Interest Expense 525,607 365,000 759,000 35,000 27,000 31,000 Cash from Operations Short-term debt + Long-term Debt $ $ 1,331,150 $ 1,000,000 $ 1,504,000 $ 500,000 $ 1,446,000 1,065,000 Current assets $ 1,544,150 $ 2,560,000 $ 2,621,000 Current liabilties $ 2,251,000 $ 1,744,000 $ 1,421,000 (Cash + Marketable securities + Accounts receivable) $ 1,188,000 $ 1,788,000 $ 2,048,000 Current liabilities $ 2,251,000 $ 1,744,000 $ 1,421,000 (Total long-term debt including current portion + Short-term debt) $ 1,000,000 $ 500,000 $ 499,000 Stockholders' equity $ 1,091,150 $ 2,332,000 $ 3,078,000 Revenue $ 4,694,000 $ 4,192,000 $ 4,243,000 Average Accounts receivable (gross) $ 99,500 $ 112,500 $ 132,000 Accounts receivable (gross) $ 108,000 $ 91,000 $ 134,000 Average daily sales $ 12,860.3 $ 11,484.9 $ 11,624.7 Cost of Goods Sold Average Accounts Payable $ $ 730,000 $ 187,000 $ 695,000 $ 175,500 $ 603,000 149,000 Accounts Payable $ 184,000 $ 190,000 $ 161,000 Average Daily Cost of Goods Sold $ 2,000.0 $ 1,904.1 $ 1,652.1 Cash Provided by Operations Capital Expenditures Cash Dividends $ $ $ 1,331,150 $ (416,000) $ (318,000) $ 1,504,000 $ (142,000) $ (283,000) $ 1,446,000 (104,000) (220,000) $ 2016 2015 2014 Intuit Inc. 3 year Average 84.4% 83.4% 85.8% 84.6% 26.5% 17.6% 27.2% 23.7% 2.01 1.30 2.66 1.99 33.0% 42.0% 38.8% 37.9% 30.7% 13.5% 23.0% 22.4% 11.5% 7.2% 14.2% 11.0% 11.2% 8.7% 17.9% 12.6% 1.0 0.8 0.8 0.9 793,130 $ 404,420 $ 705,000 $ 634,183 $ 3,543,150 $ 3,263,000 $ 4,012,000 $ 3,606,050 23.3% 11.1% 18.5% 17.6% 16.9% 9.6% 16.6% 14.4% $ 1.38 $ 1.15 $ 1.11 $ 1.22 $ 267,523.0 $ 39,420.0 $ (54,000.0) $ 84,314.3 $ (238,000) $ (1,267,000) $ (1,550,000) $ (1,018,333) (0.44) (0.52) (0.39) (0.45) 58.9% 13.9% 14.3% 29.0% -25.9% -7.2% -5.6% -12.9% $ (706,850) $ 816,000 $ 1,200,000 $ 436,383 35.4 27.4 38.2 33.6 15.0 13.5 24.5 17.7 1.3 3.0 1.4 1.9 0.7 1.5 1.8 1.3 0.5 1.0 1.4 1.0 0.9 0.2 0.2 0.4 47.2 37.3 32.1 38.9 $ 8.4 7.9 11.5 9.3 3.9 4.0 4.0 4.0 92.0 99.8 97.5 96.4 597,150 $ 1,079,000 $ 1,122,000 $ 932,717 Financial Footnote (10K) Property and Equipment Property and equipment is stated at the lower of cost or realizable value, net of accumulated depreciation. We calculate depreciation using the straight-line method over the estimated useful lives of the assets, which range from two to 30 years. We amortize leasehold improvements using the straight-line method over the lesser of their estimated useful lives or remaining lease terms. We include the amortization of assets that are recorded under capital leases in depreciation expense. We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We did not record any significant property impairment charges during the twelve months ended July 31, 2016 , 2015 , or 2014 Current Liabilities (Short-Term Debt) On March 12, 2007 we issued $500 million of 5.75% senior unsecured notes due on March 15, 2017. We carried these notes at face value less the unamortized discount on our balance sheets at July 31, 2016 and July 31, 2015 . Because their contractual maturities are now within one year, we transferred the notes from long-term liabilities to current liabilities during the third quarter of fiscal 2016. The notes are redeemable by Intuit at any time, subject to a make-whole premium, and include covenants that limit our ability to grant liens on our facilities and to enter into sale and leaseback transactions, subject to significant allowances. We remained in compliance with these covenants at all times during the fiscal year ended July 31, 2016 . Interest on the notes is payable semi-annually on March 15 and September 15. We paid $29 million in cash for interest on the notes during each of the twelve months ended July 31, 2016 , July 31, 2015 , and July 31, 2014 . Long-Term Debt On February 1, 2016 we entered into a master credit agreement with certain institutional lenders for a new five -year credit facility in an aggregate principal amount of $1.5 billion . The master credit agreement includes a $500 million unsecured term loan and a $1 billion unsecured revolving credit facility that will expire on February 1, 2021. See Note 8, \" Current Liabilities - Unsecured Revolving Credit Facilities,\" for more information regarding the revolving credit facility. Under the master credit agreement we may, subject to certain customary conditions, on one or more occasions increase commitments under the term loan in an amount not to exceed $500 million in the aggregate. The term loan accrues interest at rates that are equal to, at our election, either Bank of America's alternate base rate plus a margin that ranges from 0.125% to 0.875% or LIBOR plus a margin that ranges from 1.125% to 1.875% . Actual margins under either election will be based on our senior debt credit ratings. The master credit agreement includes customary affirmative and negative covenants. See Note 8, \" Current Liabilities - Unsecured Revolving Credit Facilities,\" for more information. The term loan is subject to quarterly principal payments of 2.5% of the loan amount beginning in July 2017, with the balance payable on February 1, 2021. At July 31, 2016 , $500 million was outstanding under the term loan, of which $12 million was classified as short-term debt. Interest on the term loan is payable monthly. We paid $4 million in cash for interest on the term loan during the twelve months ended July 31, 2016 . Key MD&A (10K) Seasonality Our Consumer Tax offerings have significant seasonal patterns. As a result, during each of the last three fiscal years the total revenue for our third quarter ended April 30 has represented nearly half of our total revenue for those years. We expect the seasonality of our Consumer Tax business to continue to have a significant impact on our quarterly financial results in the future. Industry Trends The industry in which we operate is dynamic and highly competitive, and we expect it to remain so in the future. The markets for software and related services, especially highly-available connected services, are characterized by rapid technological change, shifting customer needs, and frequent new product introductions and enhancements. Competitive interest and expertise in many of the markets we serve have grown markedly over the past few years and we expect this trend to continue. There are also large, cloud-based service companies who innovate quickly and serve small businesses and consumers. While today our competition with such companies may be limited, as we and those companies grow, our competition with them may increase. In recent years the widespread availability of the Internet, the emergence of mobile devices, and the explosion of social media have accelerated the pace of change and revolutionized the way that people throughout the world manage important financial tasks. The result is a global market that is shifting from traditional services that are paper-based, humanproduced, and brick-and-mortar bound, to one where people understand, demand, and embrace the benefits of connected services. This trend toward connected services is the primary driver of the strategies in all of our businesses. Our Cost of revenue has three components: (1) cost of product revenue, which includes the direct costs of manufacturing and shipping or electronically downloading our desktop software products; (2) cost of service and other revenue, which reflects direct costs associated with providing services, including data center and support costs related to delivering online services; and (3) amortization of acquired technology, which represents the cost of amortizing developed technologies that we have obtained through acquisitions over their useful lives. Fiscal 2016 Compared with Fiscal 2015 Cost of product revenue as a percentage of product revenue decreased in fiscal 2016 compared with fiscal 2015 due to the fiscal 2015 changes we made to our QuickBooks and ProConnect desktop software products described in \"Executive Overview - Overview of Financial Results\" earlier in this Item 7. We expense costs of product revenue as they are incurred for delivered software and we do not defer any of these costs when product revenue is deferred. Fiscal 2015 Compared with Fiscal 2014 Cost of product revenue as a percentage of product revenue increased in fiscal 2015 compared with fiscal 2014 due to the deferral of QuickBooks and ProConnect desktop software revenue described in \"Executive Overview - Overview of Financial Results\" earlier in this Item 7. We expense costs of product revenue as they are incurred for delivered software and we do not defer any of these costs when product revenue is deferred. Cost of service and other revenue as a percentage of service and other revenue increased slightly in fiscal 2015 compared with fiscal 2014 due to higher customer care costs for our Small Business Online Ecosystem and TurboTax Online offering. 1. REVENUE RECOGNITION 2013 Revenue Normlaized 2014 Revenue Normlaized 2015 Revenue Normlaized 2016 Revenue Normlaized $ $ $ $ 3,946,000 4,243,000 4,192,000 4,694,000 The 10-K of Intuit, Inc. doesnot provide any estimate or forecast about the future orders of the company. And since Therefore, I have considered the average revenue growth during last three years for the purpose of forecast. 6.1% Average over 2014 to 2015 Accounts Receivable Revenues $ 2017 4,980,331 2. COST OF SALES 2013 Cost of Sales Normalized $ 2014 Cost of Sales Normalized $ 2015 Cost of Sales Normalized $ 2016 Cost of Sales Normalized $ Assumed four year average Cost of Sales Accounts Payable 527,000 603,000 695,000 730,000 $ 2017 743,288 $ $ $ $ 647,000 714,000 798,000 881,000 3. RESEARCH AND DEVELOPMENT 2013 R & D Normalized 2014 R & D Normalized 2015 R & D Normalized 2016 R & D Normalized Assumed four year average Research and Development Accounts Payable $ 2017 884,369 4. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2013 Selling, General and Admn. $ 1,532,000 2014 Selling, General and Admn. $ 1,601,000 2015 Selling, General and Admn. $ 1,771,000 2016 Selling, General and Admn. $ 1,807,000 Assumed four year average Research and Development Accounts Payable $ 2017 1,958,515 5. NON RECURRING No Change Forecasted 6. OTHERS No Change Forecasted 7. INTEREST EXPENSE No Change Forecasted Effective Tax Rate from 2016 adjusted 33.0% 8. RECEIVABLES Adjustment 9. PREPAID EXPENSES Adjustment 10. OTHER CURRENT ASSETS Adjustment 11. DEPRECIATION a. Intuit, Inc. uses straight line method of depreciation of 2 to 30 years(specified in the footnote in previous tab) f 15 years for machinery. The company has not recorded any impairment charges during 2014, 2015 and 2016. b. Adjustments if necessary Estimated Useful Life Property, plant and equipment costs Plus: Capitalized Leases (from # 15 below) Total Property, plant and equipment costs Depreciation Expense Plus: Capitalized Lease Depreciation (from # 15 below) Total Adjusted Depreciation Expense Average useful life Annual Depreciation 12. PERCENTAGE USED UP Percent used up Accumulated depreciation Additional 3 years depreciation for Capital Leases Total Adjusted Accumumlated Depreciation Depreciable Asset Cost (from # 10 above) Percent Used Up $ Change $ $ $ % Growth 297,000 (51,000) 502,000 % Change 7.5% -1.2% 12.0% -8.7% 13.2% ture orders of the company. And since the product offerings are based on seasonal patterns. ears for the purpose of forecast. 2017 $ $ 4,980,331 2018 5,284,128 $ $ 5,284,128 2019 5,606,457 $ 5,606,457 2019 836,734 $ 836,734 $ Change % Growth % Change % of Revenue 13.36% 14.21% 14.4% 16.58% 15.3% 0.8% 15.55% 5.0% -10.2% 14.92% 2017 $ $ 743,288 2018 788,629 $ $ 788,629 $ Change % Growth % Change % of Revenue 16.40% 16.83% 10.4% 19.04% 11.8% 1.4% 18.77% 10.4% -1.4% 17.76% 2017 $ $ 884,369 2018 938,315 $ $ 938,315 2019 995,552 $ 995,552 2019 2,204,739 $ 2,204,739 $ Change % Growth % Change % of Revenue 38.82% 37.73% 4.5% 42.25% 10.6% 6.1% 38.50% 2.0% -8.6% 39.32% 2017 $ $ 1,958,515 2018 2,077,983 $ $ 2,077,983 cified in the footnote in previous tab) for property and equipment and 2 to arges during 2014, 2015 and 2016. 2,240,000 2,240,000 238,000 238,000 9.41 68,733.33 1,209,000 1,209,000 2,240,000 53.97% Inspite of the cost of service increasing slightly in FY 2015 from 2014, I have considered to take the average of four years as in FY 15 it did not involve a increase in cost of service for their entire busines segment, it was mostly for small business online Ecosystem. INTUIT, INC. FORECASTED CONSOLIDATED STATEMENTS OF OPERATIONS All numbers in thousands Revenue Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest and Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Historical Year 2016 $ Assumption Common Size 4,694,000 6.1% Revenue Growth $ 4,980,331 100.00% Assumed at 14.92% of Revenue from four 730,000 years of averags 3,964,000 $ 743,288 4,237,043 14.92% 85.08% $ 884,369 17.76% $ 1,958,515 0 34,000 2,876,884 1,360,159 39.32% 0.00% 0.68% 57.76% 27.31% 0 1,360,159 35,000 1,325,159 0.00% 27.31% 0.70% 26.61% 437,313 0 887,845 8.78% 0.00% 17.83% 0.00% 3.47% 0.00% 0.00% 0.00% 21.30% 0.00% 21.30% Assumed at 17.76% of Revenue from four 881,000 years of averags Assumed at 39.32% of Revenue from four 1,807,000 years of averags 0 No Change 34,000 No Change 2,722,000 1,242,000 -4,000 1,238,000 35,000 1,203,000 173,000 0 0 0 979,000 0 979,000 $ Assumed to be zero No Change Effective tax rate from 397,000 2016 Adjusted @ 33% 0 806,000 $ Forecasted 2017 No change $ 173,000 0 0 0 1,060,845 0 1,060,845 Assumption 6.1% Revenue Growth Assumed at 14.92% of Revenue from four years of averags Assumed at 17.76% of Revenue from four years of averags Assumed at 39.32% of Revenue from four years of averags No Change No Change Forecasted 2018 $ $ $ $ $ Assumed to be zero $ Effective tax rate from 2016 Adjusted @ 33% No change 5,284,128 788,629 4,495,500 938,315 Common Size 100.00% 14.92% 85.08% 17.76% 2,077,983 0 34,000 3,050,298 1,445,202 39.32% 0.00% 0.64% 57.73% 27.35% 0 1,445,202 35,000 1,410,202 0.00% 27.35% 0.66% 26.69% 465,378 0 944,823 8.81% 0.00% 17.88% 0.00% 3.27% 0.00% 0.00% 0.00% 21.15% 0.00% 21.15% 173,000 0 0 0 1,117,823 0 1,117,823 Assumption 6.1% Revenue Growth Assumed at 14.92% of Revenue from four years of averags Assumed at 17.76% of Revenue from four years of averags Assumed at 39.32% of Revenue from four years of averags No Change No Change Assumed to be zero Effective tax rate from 2016 Adjusted @ 33% No change Forecasted 2019 Common Size $ 5,606,457 100.00% $ 836,734 4,769,723 14.92% 85.08% $ 995,552 17.76% $ 2,204,739 0 34,000 3,234,291 1,535,432 39.32% 0.00% 0.61% 57.69% 27.39% 0 1,535,432 35,000 1,500,432 0.00% 27.39% 0.62% 26.76% 495,155 0 1,005,277 8.83% 0.00% 17.93% 0.00% 3.09% 0.00% 0.00% 0.00% 21.02% 0.00% 21.02% $ $ 173,000 0 0 0 1,178,277 0 1,178,277 INTUIT, INC. CONSOLIDATED BALANCE SHEETS USD in thousands except per share data. Assets Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Deferred income taxes Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Historic 2016 Non-operating Non-operating Operating Operating Operating Operating $ 638,000 442,000 1,080,000 108,000 102,000 324,000 1,614,000 Operating Operating 2,240,000 (1,209,000) Operating Operating Operating Operating Operating Operating Operating 1,031,000 28,000 1,282,000 44,000 139,000 112,000 2,497,000 4,250,000 Non-operating Non-operating Operating Operating Operating Operating 512,000 184,000 300,000 1,255,000 2,251,000 Operating Operating Operating Non-Operating Operating 488,000 204,000 146,000 838,000 3,089,000 Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 3,000 4,442,000 6,687,000 (9,939,000) (32,000) 1,161,000 4,250,000 Common Size Forecast 2017 15.01% 10.40% 25.41% 2.54% 0.00% 2.40% 7.62% 37.98% $ 1,871,990 442,000 2,313,990 107,077 104,587 385,976 2,911,630 Common Size Forecast Assumption 35.22% 8.32% 43.54% 2.01% 0.00% 1.97% 7.26% 54.79% 490331*15.01% No Change $4980331*26.5+994202 $490331*2.15% Forecast 2018 $ $490331*2.11% $490331*7.75% 52.71% -28.45% 3,166,062 442,000 3,608,062 113,609 111,495 145,314 3,978,479 - 724,267 28,000 1,282,000 44,000 187,758 136,959 Annual Depreciation of (2015 $238000 from cash flow No Change No Change No Change $490331*3.77% $490331*2.75% 24.26% 0.66% 30.16% 1.04% 3.27% 2.64% 58.75% 100.00% 5,314,614 13.63% 0.53% 24.12% 0.83% 3.53% 2.58% 0.00% 100.00% 417,533 28,000 1,282,000 44,000 199,212 145,314 6,094,538 12.05% 4.33% 0.00% 7.06% 0.00% 29.53% 52.96% 634,992 196,723 341,153 1,494,099 2,666,967 11.95% 3.70% 0.00% 6.42% 0.00% 28.11% 50.18% $490331*12.75% $490331*3.95% 673,726 208,723 $490331*6.85% 361,963 $490331*30% 1,585,239 2,829,651 11.48% 4.80% 3.44% 19.72% 72.68% 547,836 246,526 161,861 971,165 3,623,191 10.31% 4.64% 3.05% 18.27% 68.17% $490331*11% $490331*4.95% $490331*3.25% $490331*19.5% 581,254 261,564 171,734 1,030,405 3,844,203 0.07% 104.52% 3,000 4,442,000 0.06% 83.58% 157.34% -233.86% -0.75% 27.32% 100.00% 7,217,423 (9,939,000) (32,000) 1,691,423 5,314,614 135.80% -187.01% -0.60% 31.83% 100.00% (0) No Change No Change Previous year plus 50% of current year No Change No Change 3,000 4,442,000 7,776,334 (9,939,000) (32,000) 2,250,334 6,094,538 0 Common Size 51.95% 7.25% 59.20% 1.86% 0.00% 1.83% 2.38% 65.28% 6.85% 0.46% 21.04% 0.72% 3.27% 2.38% 0.00% 100.00% Forecast Assumption 5284128*15.01 No Change 5284128*26.5%+2220978 5284128*2.15% 5284128*2.11% 5284128*7.75% Annual Depreciation of (2015 $238000 from cash flow No Change No Change No Change 5284128*3.77% 5284128*2.75% Forecast 2019 $ 4,104,245 442,000 4,546,245 120,539 118,296 120,539 4,905,619 110,800 28,000 1,282,000 44,000 211,363 154,178 Common Size 60.93% 6.56% 67.49% 1.79% 0.00% 1.76% 1.79% 72.83% 6,735,960 1.64% 0.42% 19.03% 0.65% 3.14% 2.29% 0.00% 100.00% 11.05% 3.42% 5284128*12.75% 5284128*3.95% 714,823 221,455 10.61% 3.29% 5.94% 5284128*6.85% 384,042 5.70% 26.01% 46.43% 5284128*30% 1,681,937 3,002,258 24.97% 44.57% 9.54% 4.29% 2.82% 16.91% 63.08% 5284128*11% 5284128*4.95% 616,710 277,520 9.16% 4.12% 5284128*19.5% 1,093,259 3,896,488 16.23% 57.85% 0.05% 72.88% 127.60% -163.08% -0.53% 36.92% 100.00% No Change No Change Previous year plus 50% of current year No Change No Change 3,000 4,442,000 0.04% 65.94% 8,365,473 (9,939,000) (32,000) 2,839,473 6,735,960 124.19% -147.55% -0.48% 42.15% 100.00% 0 Forecast Assumption 5606457*15.01 No Change 5606457*26.5%+3060534 5606457*2.15% 5606457*2.11% 5606457*7.754% Annual Depreciation of (2015 $238000 from cash flow No Change No Change No Change 5606457*12.75% 5606457*3.95% 5606457*6.85% 5606457*30% 5606457*11% 5606457*4.95% 5606457*19.5% No Change No Change Previous year plus 50% of current year No Change No Change INTUIT, INC. STATEMENT OF CASH FLOWS USD in thousands except per share data. Cash Flows From Operating Activities Net income Depreciation & amortization Investment/asset impairment charges Investments losses (gains) Deferred income taxes Stock based compensation Accounts receivable Prepaid expenses Accounts payable Accrued liabilities Income taxes payable Other working capital Other non-cash items Net cash provided by operating activities Cash Flows From Investing Activities Investments in property, plant, and equipment Acquisitions, net Purchases of investments Sales/Maturities of investments Purchases of intangibles Other investing activities Net cash used for investing activities Cash Flows From Financing Activities Debt issued Debt repayment Common stock issued Common stock repurchased Excess tax benefit from stock based compensation Dividend paid Other financing activities Net cash provided by (used for) financing activities Effect of exchange rate changes Net change in cash Cash at beginning of period Cash at end of period 2016 $ 979,000 238,000 70,000 281,000 (20,000) (10,000) (23,000) 223,000 (337,000) $ 1,401,000 (416,000) 463,000 (934,000) 1,352,000 (94,000) 371,000 1,495,000 (995,000) (2,264,000) (318,000) 142,000 (1,940,000) (2,000) (170,000) 808,000 638,000 Forecasted 2017 Assumptions $ $ 1,060,845 As per Income stmt 306,733 No change - No change - No Change 70,000 No change 281,000 No Change 923 (2,587) 12,723 - No Change - No change 223,000 No Change (337,000) 1,615,638 Forecasted 2018 Assumptions $ $ 1,117,823 As per Income stmt 306,733 No change - No change - No Change 70,000 No change 281,000 No Change (6,532) (6,908) 12,000 - No Change - No change 223,000 No Change (337,000) 1,660,117 0 No change 0 No change 0 No Change 0 No change 0 No Change 0 No change 0 No Change 0 No change 0 No Change 0 No change 0 No Change 530423 50% of Net Income 0 No Change 530,423 0 2,146,060 1,080,000 2,313,990 0 No change 0 No change 0 No Change 0 No change 0 No Change 0 No change 0 No Change 0 No change 0 No Change 0 No change 0 No Change 558912 50% of Net Income 0 No Change 558,912 0 2,219,029 2,313,990 3,608,062 For the Years End Forecasted 2019 Assumptions $ $ 1,178,277 As per Income stmt 306,733 No change - No change - No Change 70,000 No change 281,000 No Change (6,930) (6,801) 12,732 - No Change - No change 223,000 No Change (337,000) 1,721,011 2016 $ 979,000 238,000 70,000 281,000 (20,000) (10,000) (23,000) 223,000 (337,000) $ 1,401,000 0 No change 0 No change 0 No Change 0 No change 0 No Change 0 No change (416,000) 463,000 (934,000) 1,352,000 (94,000) 371,000 0 No Change 0 No change 0 No Change 0 No change 0 No Change 589138 50% of Net Income 0 No Change 589,138 0 No Change 2,310,150 3,608,062 4,546,245 1,495,000 (995,000) (2,264,000) - (318,000) 142