Question

For the Years Ended October 31, 2019 2018 2017 8,428 $ 11,061 $ 10,090 $ 190 160 11,251 10,250 142 8,570 9,245 12 7 934 319 312 8,317 (1) 14 828 297 327 7,037 3 13 751 251 351 164 48 106 10,993 9,830 8,512 4 6 (in millions, except per share data) Sales and revenues Sales of manufactured products, net.. Finance revenues.. Sales and revenues, net. Costs and expenses Costs of products sold. Restructuring charges. Asset impairment charges Selling, general and administrative expenses Engineering and product development costs. Interest expense Other expense, net. Total costs and expenses. Equity in income of non-consolidated affiliates Income from continuing operations before income taxes. Income tax expense Income from continuing operations. Income from discontinued operations, net of tax Net income Less: Net income attributable to non-controlling interests. Net income attributable to Navistar International Corporation Amounts attributable to Navistar International Corporation common shareholders: Income from continuing operations, net of tax... Income from discontinued operations, net of tax Net income. Earnings per share: Basic: Continuing operations Discontinued operations. 262 64 420 (52) 368 (19) 243 (10) 54 1 243 368 55 22 28 25 221 S 340 $ 30 221 340 $ 29 1 221 $ 340 $ 30 2.23 $ 3.44 $ 0.31 0.01 S 2.23 S 3.44 $ 0.32 Diluted: Continuing operations Discontinued operations. s 2.22 S 3.41 $ 0.31 0.01 $ 2.22 S 3.41 $ 0.32 Weighted average shares outstanding: Basic 99.3 93.0 98.9 99.6 Diluted 99.5 93.5

Only the accounts listed are needed on this form.

2 Your Totals must equal the company’s Totals! (BUT THE ACCOUNTS ON THIS FORM DON’T HAVE TO ADD UP TO THE TOTAL AMOUNT SINCE NOT ALL ACCOUNTS ARE ON THIS FORM)

3 Interest expense may not be listed on the income statement you obtained. If it is not, check the bottom of the company’s cash flow as well as the footnotes. If you can’t find it see me before using “net interest”.

4 this is (each account $ amount divided by the Revenue $ amount) x 100

(After multiplying by 100 only include one decimal place: ex: 23.4%)

5 This is the percent change in the dollar amounts. (($ in 2019 - $ in 2018)/$ in 2018) x 100

(After multiplying by 100 only include one decimal place: ex: 23.4%)

Question 3. Fill in the following chart using the income statement provided above

Answer 1

Account Name	2019	2018	%Change		% Common Size
	$	$			2019
Revenue
Sales of manufacturing products (a)	11061	10090	9.6%		100.0%
Finance Revenue (b)	190	160	18.8%		1.6%
Sales and Revenue (net)	11251	10250	9.8%		101.6%
Cost of goods Sold (c)	9245	8317	11.2%		82.4%
Gross Profit (a - c)	1816	1773	2.4%		17.6%
Interest Expense	312	327	-4.6%		3.2%
Net Income	221	340	-35.0%		3.4%
Net Expense	1748	1513	15.5%		15.0%
Pre Tax Income	243	368	-34.0%		3.6%