Consider the following excerpts from Genentech's 2004 income statement and cash flow statement. From the 2004 income
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Revenues ................... ?
Costs and expenses
Cost of sales .............. $672.5
Research and development ......... 947.5
Marketing, general, and administrative ... 1,088.1
Collaboration profit sharing ....... 593.6
Special charges ............ 182.7
Other expense-net interest income ...... (82.6)
Income before tax ........... 1,219.4
Income tax ............... 434.6
Net income ................. 784.8
From the 2004 cash flow statement (in thousands):
Cash flows from operating activities
Net income .................. $784,816
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ........... 353,221
Deferred income taxes .............. (73,585)
Deferred revenue ................ (14,927)
Litigation-related and other long-term liabilities .... 34,722
Tax benefit from employee stock options....... 329,470
Gain on sales of securities available for sale and other .. (13,577)
Loss on sales of securities available for sale ....... 1,839
Write-down of securities available for sale ...... 12,340
Loss on fixed asset dispositions ........... 5,115
Changes in assets and liabilities:
Receivables and other current assets ........ (362,740)
Inventories .................. (120,703)
Investments in trading securities ........... (75,695)
Accounts payable and other current liabilities ..... 335,542
Net cash provided by operating activities ...... $1,195,838
For 2004, calculate
a. Revenues,
b. Ebit (earnings before interest and taxes).
c. Ebitda (earnings before interest, taxes, depreciation, and amortization).
The following were reported in Genenatechs 2004 balance sheet (in millions):
Current assets .......... $3,422.8
Total assets ........... 9,403.4
Long-term liabilities ...... 1,377.9
Stockholders' equity ...... 6,782.2
d. Calculate the long-term assets and short-term liabilities that were reported. The following were also reported in the 2004 statements (in millions):
e. Calculate cash flows from financing activities reported for2004.
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