1. Calculate Lowe's after-tax operating income in 2012. (Hint: Tax rate is 37.296) (10 points) 2. Calculate ROA in 2012 using a flow method (.e. average) and interpret the value. (20 points) 3. Calculate Total Debt to Equity in 2012. (10 points) 4. Calculate interest Coverage Ratio in 2012/10 points) End of Fiscal 2012 2011 Assets End of Fiscal 2012 2011 Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets 2,494 1,395 10,710 773 15,372 1,987 1.252 10,360 866 14,465 Liabilities and Shareholders' Equity Current liabilities Debt due for repayment Accounts payable Other current liabilities Total current liabilities 1,321 8,871 1,270 11,462 30 8,173 1,183 9,386 Fixed assets Tangible fixed assets Property, plant, and equipment Less accumulated depreciation Net tangible fixed assets Long-term debt Deferred income taxes Other long-term liabilities 9,475 319 2,051 10,798 212 2,161 38,491 14,422 24.069 37,059 12.738 24,321 Total liabilities 23,307 22,557 Intangible asset (goodwill) Long-term investments Other assets 1,170 140 333 1,267 138 551 Shareholders' equity Common stock and other paid-in capital Retained earnings Treasury stock Total shareholders' equity 8,433 20,038 -10,694 17.777 7,649 17.246 -6,710 18,185 Total assets 41,084 40,742 Total liabilities and shareholders' equity 41,084 40,742 o % of Sales $ Million 74,754 48,912 16,305 1,684 100.0 65.4 21.9 2.3 Net sales Cost of goods sold Selling, general, & administrative expenses Depreciation Earnings before interest and income taxes (EBIT) Interest expense Taxable income Taxes Net income Allocation of net income Dividends Addition to retained earnings 7,853 632 7,2211 2,686 4,535 10.5 0.8 9.7 Income Statement 3.6 6.1 1,743 2,792 2.3 3.7