Using Harley Davidson financial statmement, please solve for step two of free cash flow calculation.
Step Two is to figure out Harley's investment in net operating working capital.
Harley Davidson Income Statement TAX TABLE 0-50k 15%. 50-75k 75-100K 100-335k 335k+ 25% 34% 39%. 34% Sales (70% credit, 30% cash) Cost of goods sold Gross profit SG&A Depreciation Total operating Operating Income Interest Earnings before tax Provision for income tax Net Income 6,195,197 2,673,129 3,522,068 465,831 160,119 625,950 2,896,118 17,849 2,878,269 298,052 2,580,217 Tax exclusion rate Less than 20% 20-79% 80% + 70% excluded 75% excluded 100% excluded Balance sheet 2009 2010 635,449 775,264 181,115 73,436 1,665,264 795,528 964,465 218,156 88,437 2,066,586 ASSETS Cash Account Receivables Inventory Other current assets Total current assets Gross plant property & equipment Depreciation Net plant property & equipment Other assets Total assets 1,705,361 813,541 2,066,256 973,660 891,820 561,411 3,118,495 1,032,596 862,035 3,961,217 LIABILITIES AND Accounts Payable Accrued Expenses Income Taxes payable Short Term notes Other interest bearing current liability Total current liabilities Long term debt Total liabilities 217,051 194,683 65,875 141,191 386,579 226,977 63,886 189,024 97,310 716, 110 646,102 1,362,212 123,586 990,052 638,250 1,628,302 COMMON EQUITY Common stock Paid in Capital Retained Earnings Less Treasury Stock Totalcommon equity Total liabilities and equity 3,242 359,165 1,819,422 425,546 1,756,283 3,118,495 3,254 386,284 2,425,737 482,360 2,332,915 3,961,217 Assets Equity Debt Operating Income Interest Net Income Joe 1800 1800 0 250 0 250 Ray 1800 1000 800 250 80 170 Harley Davidson Income Statement TAX TABLE 0-50k 15%. 50-75k 75-100K 100-335k 335k+ 25% 34% 39%. 34% Sales (70% credit, 30% cash) Cost of goods sold Gross profit SG&A Depreciation Total operating Operating Income Interest Earnings before tax Provision for income tax Net Income 6,195,197 2,673,129 3,522,068 465,831 160,119 625,950 2,896,118 17,849 2,878,269 298,052 2,580,217 Tax exclusion rate Less than 20% 20-79% 80% + 70% excluded 75% excluded 100% excluded Balance sheet 2009 2010 635,449 775,264 181,115 73,436 1,665,264 795,528 964,465 218,156 88,437 2,066,586 ASSETS Cash Account Receivables Inventory Other current assets Total current assets Gross plant property & equipment Depreciation Net plant property & equipment Other assets Total assets 1,705,361 813,541 2,066,256 973,660 891,820 561,411 3,118,495 1,032,596 862,035 3,961,217 LIABILITIES AND Accounts Payable Accrued Expenses Income Taxes payable Short Term notes Other interest bearing current liability Total current liabilities Long term debt Total liabilities 217,051 194,683 65,875 141,191 386,579 226,977 63,886 189,024 97,310 716, 110 646,102 1,362,212 123,586 990,052 638,250 1,628,302 COMMON EQUITY Common stock Paid in Capital Retained Earnings Less Treasury Stock Totalcommon equity Total liabilities and equity 3,242 359,165 1,819,422 425,546 1,756,283 3,118,495 3,254 386,284 2,425,737 482,360 2,332,915 3,961,217 Assets Equity Debt Operating Income Interest Net Income Joe 1800 1800 0 250 0 250 Ray 1800 1000 800 250 80 170
