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Please provide instructions on how the information is calculated. $ 2007 13,978 12,091 1,887 1,521 196 LENOVO GROUP (LNVGY) INCOME STATEMENTS $ in millions) For

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Please provide instructions on how the information is calculated.

$ 2007 13,978 12,091 1,887 1,521 196 LENOVO GROUP (LNVGY) INCOME STATEMENTS $ in millions) For fiscal year ended March 31, 2010 2009 2008 Sales revenue $ 16,605 $ 14,901 $ 16,352 Cost of sales (COGS) 14,815 13,104 13,902 Gross profit 1,790 1,797 2,450 Selling general, and distribution exp (SGA) 1,406 1,566 1,700 Research and development expense (R&D) 214 220 230 Other operating expenses (49) 203 21 Total operating expenses 1,571 1,989 1,951 Operating income 219 (192) 499 Interest Expense 63 38 38 Other nonoperating income 21 42 52 Total nonoperating revenue (expense) (42) 4 14 Income before income tax 177 (188) 513 Provision for income tax 47 38 48 Income from continuing operations 130 (226) 465 Nonrecurring items 0 0 +19 Net income $ 130 $ (226) $ 484 1,726 161 35 29 (6) 155 27 128 +33 161 $ Refer to the series of income statements presented above to answer the following questions. Q1 Prepare a trend analysis of Sales Revenue for all four years: Fiscal year ended March 31 2010 2009 2008 2007 Sales revenue The greatest increase took place in 2010 / 2009 / 2008). What are some likely reasons for this increase? Q3 Compute common-size percentages during 2010 and 2008 for the amounts below. 2010 2008 Sales revenue COGS Gross profit Operating expenses Operating income % % % % % % % % % %

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