VERSION ONE-PLL next page from Joe and Ray, as an investor, (a) who would you rather invest with? what can potentially ruin your investment? (answer needs to include calcualtions) 1. Using data on next page from (b) why? (c) what can potenti haced on sales of $13,000,000 and total assets of _ Harley Davidson Income Statement 2010 Sales (70% credit, 30% cash) cost of goods sold gross profit SG&A depreciation total operating expenses operating income interest earnings before tax provision for income tax net income TAX TABLE 0-50k 50-75k 75k-100k 100-335k 335k+ 15% 25% 34% 34% 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 >20%-70% excluded 20-79% 75% excluded 80%+- 100% excluded ASSETS Cash Accounts receivable Inventory Other current assets Total current assets Gross Plant Property and Equipment Depreciation Net Plant Property and Equipment Other Assets Total Assets Liabilities and Equity Accounts Payable Accrued Expenses Income Taxes Payable Short Term Notes Other Interest Bearing Current Liabilty Total Current Liability Long Term Debt Total Liabilities 2009 635,499 775,264 181,115 73,436 1,665,264 1,703,361 813,541 891,820 561,441 3,118,495 2010 795,528 964,465 218,156 88,237 2,066,586 2,066,256 973,660 1,032,596 862,035 3,961,217 217,051 194,683 65,875 141,191 97,310 716,110 646,102 1,362,212 386,579 226,977 63,886 189,024 123,586 990,052 638,250 1,628,302 Commom Equity Total Common Equity Total equity and liability 1,756,283 3,118,495 2,332,915 3,961,218 JOE RAY 1800 1800 Assets equity debt operating income interest net income 1800 1000 800 250 80 170 250