Question

Tableau Software provides business analytics software products, including Tableau Desktop, Tableau Server, and Tableau Online. It is considered a leader in the data analytics/business Intelligence movement. However, Tableau doesn't just license its products for use by others. It also provides maintenance, support, training, and professional services to various customers. As a consequence, its income statement shows two sources of operating revenues (product licenses/maintenance and services) and two related costs of goods/services provided to customers. Presented below are the items adapted from its recent income statement for the year ended December 31 (in thousands, except per share amounts). Net earnings per share were minus $2.35, which would normally be noted as ($2.35), and the weighted average shares used in the computation was 78,869 Cost of licenses Cost of maintenance and services General and administrative expense Income tax expense License revenue $ 13,534 Maintenance and services revenue 100,025 Other income 102,871 Sales and marketing expense 6,861 Research and development expense 429, 204 $447,855 12,266 517,446 334,148 Required: 1. Recognizing that Tableau has two sources of operating revenues, prepare a classified (multiple-step) income statement. 2. Which source of operating revenues produces the higher gross profit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Recognizing that Tableau has two sources of operating revenues, prepare a classified (multiple-step) income statement. (Enter all losses with a minus sign. Enter your answers in thousands.) TALEAU SOFTWARE Consolidated Statement of Income

Answer 1

877,059 TABLEAU SOFTWARE Consolidated Statement of Income For the Year Ending 31st Dec. (In thousands, except per share amounts) Net revenues: License revenue 429,204 Maintenance and services revenue 447,855 Total Net Revenue Cost of Sales; Cost of licenses 13,534 Cost of maintenance and services 100,025 Total Cost of Sales Gross Profit Operating expenses; Sales and marketing expense 517,446 Research and development expense 334,148 General and administrative expense 102,871 Total Operating expenses Operating Revenues /(Loss) Other Incomes (Losses) Other Income Losses Before Taxes Income Tax expense Net Loss 113,559 763,500 954,465 (190,965) 12,266 (178,699) 6,861 (185,560)

Earnings Per Share; 100 102 Net Loss A) Weighted average shares (B) Earnings Per Share (A/B) -185560 78869 -2.35 104 205 2. Which source of operating revenues produces the higher gross profi 106 Product Licenses 107 108 109 110 111 License revenue Cost of licenses Gross Profit 429,204 13,534 415,670 Higher 113 114 Maintenance and services revenue Cost of maintenance and services Gross Profit Maintenance and Services 447,855 100,025 347,830 115 116 117 118 Product Licenses produces the higher profits. 119