E2.10. Using Accounting Relations: Genentech Inc. (Medium) Consider the following excerpts from Genentech's 2004 income statement and cash flow statement. From the 2004 income statement (in millions): Revenues Costs and expenses Cost of sales $ 672.5 Research and development 547.5 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 Adjustments to reconcile net income to net cash provided by operating activities: $ 784,816 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 Less on fixed asset dispositions 5,115 Changes in assets and liabilities: Receivables and other current assets Inventories Investments in trading securities Accounts payable and other current liabilities Net cash provided by operating activities For 2004, calculate

a. Revenues.

b. ebit (earnings before interest and taxes). cebitda (earnings before interest, taxes, depreciation, and amortization). The following were reported in Genentech's 2004 balance sheet (in millions): (362,740) (120,703) (75,695) 335,542 $1,195,838 Current assets Total assets Long-term liabilities $3,422.8 9,403.4 1,377.9 6,782.2 Stockholders' equity

d. Calculate the long-term assets and short-term liabilities that were reported. The following were also reported in the 2004 statements (in millions): 2004 2003 Cash used in investing activities (in the cash flow statement) $451.6 $1,398.4 Cash and cash equivalents (in the balance sheet) 270.1 372.2 Calculate cash flows from financing activities reported for 2004.