Question
How much operating income would GR make if revenue grew at the same rate in fiscal year 2004 as it did in 2003 and each
- COGS
- SG&A expenses
- R&D expenses
- Depreciation and amortization
Statement (in $ millions) | 2003 | 2002 | ||
---|---|---|---|---|
Revenue | ||||
Products | 3400 | 3020 | ||
Services | 180 | 140 | ||
Total Revenue | 3580 | 3160 | ||
COGS | ||||
Products | 260 | 270 | ||
Services | 95 | 85 | ||
Total Cost of Revenue | 355 | 355 | ||
Gross Profit | 3225 | 2805 | ||
SG&A | 1260 | 1020 | ||
R&D | 660 | 610 | ||
Depreciation/Amortization | 270 | 315 | ||
Operating Income | (424) | (400) | ||
Gain (loss) on sale of assets | 16 | 7 | ||
Interest income (expense) | 36 | 12 | ||
Pretax Income | (372) | (381) | ||
Provision for income taxes | 207 | 229 | ||
Net Income | (579) | (610) |
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the operating income for GR Growth Rate in fiscal year 2004 we need to first determine the growth rate for each of the mentioned costs COGS SGA expenses RD expenses Depreciation and Amort...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
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