Formulating Financial Statements from Raw Data Following is selected financial information from Cisco Systems Inc. for the year ended July 30, 2016

($ millions).

Cash, ending year . . . . . . . . . . . . . . . . $ 7,631 Total liabilities . . . . . . . . . . . . . . . . . . $ 58,067 Cash from operating activities . . . . . . . 13,570 Cash from financing activities . . . . . (4,699)

Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . 49,247 Noncash assets . . . . . . . . . . . . . . . . 114,021 Stockholders’ equity . . . . . . . . . . . . . . 63,585 Cash from investing activities. . . . . . (8,117)

Cost of goods sold. . . . . . . . . . . . . . . . 18,287 Net income . . . . . . . . . . . . . . . . . . . . 10,739 Total expenses (other than cost of goods sold) . . . . . . . . . . . . . . . . . . . . 20,221 Cash, beginning year . . . . . . . . . . . . 6,877 Required

a. Prepare the income statement, the balance sheet, and the statement of cash flows for Cisco Systems for the fiscal year ended July 30, 2016.

b. Do the negative amounts for cash from investing activities and cash from financing activities concern us? Explain.

c. Using the statements prepared for part

a, compute the following ratios (for this part only, use the yearend balance instead of the average for assets and stockholders’ equity):
i. Profit margin ii. Asset turnover iii. Return on assets iv. Return on equity