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Revenue Equipment sales . Supplies, paper and other . Sales . Service, outsourcing and rentals …………………….………. Finance income . Total Revenues . $ 3,857 $ 3,550 $ 4,679 3,377 3,096 3,646 ———7,234 6,646 8,325 13,739 7,820 8,485 660 713 798 —21,633 15,179 17,608 continued ){erOj~ COrporation P(RX} —‘ —_ .. __.. _—-_ ….._.__…. .__._-_.._._… —-.-.–.._———_ ..—- 5-47 Module 5 I Reporting and Analyzing Operating Income continued from prior page Costs and Expenses Cost of sales. . Cost of service, outsourcing and rentals . Equipment financing interest . Research, development and engineering expenses . Selling, administrative and general expenses . Restructuring and asset impairment charges . Acquisition-related costs . Amortization of intangible assets . Other expenses, net . Total Costs and Expenses . Income (Loss) before Income Taxes, and Equity Income . Income tax expense (benefrt) . -11.. Equity in net income of unconsolidated affiliates . Net income . Less: Net income attributable to noncontrolling interests . Net income Attributable to Xerox . 4,741 4,395 5,519 9,195 4,488 4,929 246 271 305 781 840 884 4,594 4,149 4,534 483 (8) 429 77 72 312 60 54 389 285 1,033 —20,818 14,552 17,687 —815 627 (79) 256 152 (231) 78 41 113 —637 516 265 31 31 35 —$ 606 $ 485 $ 230 Notes: The income statement includes sales of Xerox copiers and revenue earned by a finance subsidiary that provides loan and lease financing relating to the sales of those copiers. Equity in net income of unconsolidated affiliates refers to income Xerox has earned on investments in affiliated (but unconsolidated) companies. . Required a. Xerox reports several sources of income. How should revenue be recognized for each of these business activities? Explain. b. Compute the relative size of Sales revenue (total) and of revenue from Service, outsourcing and rentals. Hint: Scale each type of revenue by Total revenue. Which type of revenue grew more…