1. Following on last week's Financial Review article "Telstra follows Rio in scrapping reverse factoring", read another article on reverse factoring "The quiet rise of factoring: a CFO's favourite cashflow weapon" (uploaded on UTS Canvas) and answer the following: a. What financial ratios may be affected by firms' decisions on whether to classify reverse factoring as an operating or financing activity? b. What managerial motivations may explain such financial reporting and disclosure decisions? 2. You are interviewing for a prestigious position at The KnowltAll Group, a leading financial consulting firm. The KnowltAll Group puts its applicants through rigorous analytical skills and critical thinking tests. You've passed every test so far, but your final challenge is the following: You are given financial statement data from three companies, with the real company names disguised. You need to match each set of data to the corresponding company name and description. You are also asked to describe your reasoning Here are the business descriptions of the three companies: Company Cisco Systems, Inc. Marriott International: The Home Depot: Descriptions Cisco Systems, Inc., designs and sells a broad range of networking, security, collaboration, and cloud technologies to ensure secure platforms for their customers digital businesses across the globe. In addition to its product offerings, Cisco provides a broad range of service offerings, including technical support services and advanced services. Cisco's customers include businesses of all sizes, public institutions, governments, and service providers, Cisco relies on contract manufacturers for all of its manufacturing needs. Cisco's industry requires that it regularly introduces new products and features to address the demands of its markets, and it seek to establish and maintain its proprietary rights in technology and products through the use of patents, copyrights, trademarks, and trade secret laws. Cisco also provides financing arrangements for certain customers to build, maintain, and upgrade their networks. Marriott International is an operator, franchisor, and licensor of hotel, residential, and timeshare properties. It operates almost 2,000 properties under long-term management and lease agreements. Substantial revenue is earned from management fees, royalties, and franchising fees. The company operates its own centralized reservation service. Marriott classifies its accommodations into two categories: classic and distinct. Some of its more recognizable brands include Ritz-Carlton, St. Regis, Sheraton. Residence Inn and Fairfield by Marriott. Company-operated properties are in North America, Europe, the Middle East, Africa, parts of Asia, and Latin America. The Home Depot is a big box retailer that offers a wide assortment of building materials, home improvement products, lawn and garden items, and dcor. Home Depot also provides a number of services including home improvement installation services and tool and equipment rental. In 2017, Home Depot was the largest retailer in the home improvement category and operated 2,284 stores throughout the United States, Canada, and Mexico. Home Depot's large stores average over 128,000 square feet, including both the main store and garden centers, and stock between 30,000 and 40,000 products each year. Home Depot also maintains a network of distribution and fulfillment centers and serves its ecommerce channel through its main website and those of supplemental products. Home Depot's stores, product offerings, and services cater to do-it-yourself (DIY) and do-it-for-me (DIFM) customers and professionals, including contractors and specialty tradespeople. Here is the financial data of the above these companies, with the real company needed Financial Dats Company & Company Company C Balance Sheet Cash, Cash Eonalents & ST Investments 100% 5,00% Acces Receivable 8.30% ARN Other Raveisab 0.00% 0.00% Tinal Receivables 1.30% 44% 0.00% 1.40% 28.60% Other Current Aes 30% 140% Tonal Curent A 11.30% 63.40 425ON Propony, Plant & Equipm 1.30 Long vest and her LT Avies 80% 7.20 130% Goodwill & Oer nanghits 7539 25.00% LAPT Telal A Accom Payable 30% 0.90% 56.30% Accel Expens 11.30% 30% Umed Revena KRON [CIPS Other Cum Lishinies 100% 15.40% 30% tal Care Libilitie 06.40% Long-Term Deb 53.40% Capital Lenes 10.70% 000 20 Other Non Care Lublini 250% Crime Stock boons Aditional Paid In Capital 2410% Retained Earnings 0.00 9.7015 Tamary Stock 39306 00% 108.29% Comprehensive Income and Other 100% 0.30% 130% Total Equity 15.60% 39.50% 1305 Total Liabilities and Equity Income Statement Revenue 100.00% 100.00% Cost of Goods Sold 31.30% 6.00% Selling, General & Admin Exp 150% 21.30% RAD ESP 0.00% 1260% 0.00% Depreciation & Amort 100% 4.30% 1.80% Chet Operating Exp 0.00% Interest Expense 1306 MON 100% Ober Expenses & Revenues OOP come Tax Expe Not Income 50% Please match the sets of financial data to the conespending real company name and description Which set of financial data fcompany A. 11 or C) belongs to Cisco Systems, to Mario International, the Home Depot respectively? Describe the reasoning for your choices 3. The following information is from financial statements (in thousands of dollar 2027 2020 500 990 Operating cash Short-term investmen 245 365 Accounts receivable 735 610 lavestones 1020 1145 Property & plant crict) 2040 1920 Accounts payahle 520 590 Long-term debt 1370 1930 Comme equity 2.650 2.510 Sales 1,000 Interest income 90 Operating expenses 2.750 interest expen 160 105 95 Compressive income The fistas tate 30%, and there are no other comprehensive income i Required: 1. Calcula Rehs on Equity (ROE) for 2021 2. Calculas Return on Net Operating Assets (NOA) 2021 3. Supply the numbers for the Samude ROE-PMATO FLEV(RNOA-NBC) He is the fancial data of the above the companies, with the real company names dinged Find Date Balance Sheet Company A Company Company C Other Ra D A 100% 30% LDING 25.60% Oder Cum A 1.30% APG Total Care A 11.30% 42.50% 30% 13PL 30% Goodell & Other Imanghin en's Total A 100.00% 100% 30 16.30 Acreet Expe 11.2PS E1% LIPS Oder Cut Listes to 100% Tal C Labines Term Date 12 TIP TRAN 32.40% 2.9% Our Non-Comet Li 25.50% 14.10% Total Lishes 0.00% Adal Pad In Capital [24 0.00% 201 Tory Sk 59.30% 0.00 -10.2016 4.10% 0.11 13% Total Equity 15.60% 39.50% 130% 100% Income Statement Re 10000% 100.00% 100% Cast of Goods Sold 1.30% 06.00% Selling General & Admin Exp 3.90% 23.30% 17.70% AD Exp 12.60% e.com 1.30% 4.30% 1 Oder Opening Expenses me 0.00% 3.10% 000 130% FLOON Other Expenses & Revenues 230% Jo come Tax Expe KAONG Please match the sets of financial data to the corresponding real company and description Which set of financial data (company A, B or C) belongs to Coco Systems, Inc. Mo International, the Home Depot respectively? Describe the reasoning for your choices 3. The following information is from financial statements (in thousands of dolla Operating cash Short-se 2021 2020 500 990 investments 245 345 Accounts receivable 735 610 venturies 1020 145 Property & plant (net) 2040 1920 Accounts payable 520 590 Long-term debe 1370 1930 Common equity 2650 2,510 Sales merest income 0.000 90 2.730 100 Tax expense 105 95 Operating expenses Compertensive in The firm's as rate is 10%, and there are no other comprehensive income in Required: 1. Calcular Rum on Egury (ROE) f 2021 2. Calculas Return on Net Operating Assets (KNOA) for 2821 3. Supply the ubers for the formula ROE PMATO FLEVx (RNOA-NDCE