CP 3-2

Essay text:

For that, we owe a debt of gratitude to our employees worldwide, who aggressively brought costs down?even as they continued to bring exciting new products to market. The statement would not appear to be telling you enough. For example, McNealy says the year was a mixed bag with revenue growth of 16 percent. But what about earnings? You can delve further by examining the income statement in Figure 1. Also, for additional analysis of other factors, consolidated balance sheet(s) are presented in Figure 1. Sun Microsystems, Inc. Summary Consolidated Statement of Income (in millions) 2001 Dollars 2000 Dollars 1999 Dollars 1998 Dollars Net revenues $18,250 $15,721 $11,806 $9,862 Costs and expenses: Cost of sales 10,041 7,549 5,670 4,713 Research and development 2,016 1,630 1,280 1,029 Selling, general and administrative 4,544 4,072 3,196 2,826 Goodwill amortization 261 65 19 4 In-process research and development 77 12 121 176 Total costs and expenses 16,939 13,328 10,286 8,748 Operating income 1,311 2,393 1,520 1,114 Gain (loss) on strategic investments (90) 208 -- -- Interest income, net 363 170 85 48 Litigation settlement -- -- -- -- Income before taxes 1,584 2,771 1,605 1,162 Provision for income taxes 603 917 575 407 Cumulative effect of change in Accounting principle, net (54) -- -- -- Net income $ 927 $ 1,854 $ 1,030 $ 755 Net income per common share? Diluted $ 0...