1. Based on the financial statements of Macy's Inc., calculate the following ratio for 2019 only unless otherwise stated. a. Profitability ratios: return on equity; return on assets; profit margin: gross profit margin; and general overhead ratio: b. Solvency ratios: Debt to equity; leverage multiplier, quick ratio, current ratio; times interest earned ratio, c. Activity ratios: Asset turnover, working capital turnover: inventory turnover; account receivable collection period; account payable collection period; d. Using the Dupont method, calculate the 5 components of Macy's Company's ROE for both 2017 and 2019. e. Evaluate the company's bankruptcy risk using Z-score. Balance Sheet (In Millions of US S) 2019 Assets Cash $ 1.455 S 685 Income Statement (In Millions of US S) 2017 2019 Sales S 24.837 S 25.331 Cost of goods sold 15.152 15,171 Selling & General Administrative expense 8.131 8.998 Total non-operating income expense 276 (230) Interest expense 323 204 Income before taxes $ 1,507 S 728 Income tax expense (29) 164 Net Income S 1,536 S 564 S S Accounts receivable Inventory Total current assets Property, plant, and equipment Accumulated depreciation Other long-term assets Total long-term assets Total assets 811 5,178 7,444 11,282 (4.610) 5.265 11.937 19,381 937 5.188 6,810 13,693 (4.392) 5061 14.362 21,172 $ $ $ Liabilities and Equity Accrued liabilities Accounts payable Other current liabilities Current liabilities Long-term fiabilities Common stock Retained earnings Total liabilities and equity 590 2.659 2.501 5.750 662 S 2.325 $ 2.088 5,075 $ 8.645 3 5.658 19,381 $ 9,045 S 6.374 21,172 The market value of Macy's equity is $4,940 million on 1/31/2020 and $1,528 million on 4/22/2020