1) How efficient is the company in using resources at its disposal? (provide step by step formula answer)

2) Overall, how effectively is the company being managed? (provide step by step formula answer)

Income Statement All numbers in millions of US Dollars 2018 (05/31/19) 2017 (05/31/18) 2016 (05/31/17) Sales/Turnover (Net) 3,773 3,381 3,151 Cost of Goods Sold Gross Profit (Loss) 996 2,776 880 2,501 793 2,359 Selling, General and Administrative Expenses 1,218 1,076 992 Operating Income Before Depreciation 1,558 1,426 1,367 Depreciation and Amortization - Total 182 138 127 Operating Income After Depreciation 1,377 1,288 1,240 18 14 Interest and Related Expense Non-operating Income (Expense) Total Interest Income - Total Special Items Income (Expense) Pretax Income 13 12 13 10 -5 -- 1,368 1,296 1,245 Expense (Credit) Income Taxes Expense (Credit) Minority Interest - Income Account NET INCOME 1,034 934 817 All numbers in millions of US Dollars 2018 2017 2016 (05/31/19) (05/31/18) (05/31/17) Liabilites Current Liabilities 76 75 57 Debt in Current Liabilities Account Payable/Creditors - Trade Income Taxes Payable Current Liabilities - Other 0 0 4,769 5,213 4,668 Current Liabilities Total 4,845 5,287 4,725 Long-Term Liabilities Long-Term Debt Total Deferred Taxes and Investment Tax Credit Liabilities (Other) 796 223 192 0 49 103 152 34 119 Long-Term Liabilities Total 1,212 153 Liabilities Total 6,057 5,439 4,878 Minority Interest - Balance Sheet 0 Shareholders' Equity 0 0 0 Preferred/Preference Stock (Capital) - Total Common/Ordinary Equity - Total Shareholders' Equity Total 2,620 2,025 1,955 LIABILITIES AND SHAREHOLDERS' EQUITY TOTAL 8,676 7,464 6,834 Paychex, Inc (PAYX) Balance Sheet All numbers in millions of US Dollars 2018 2017 2016 (05/31/19) (05/31/18) (05/31/17) Assets Current Assets 323 543 Cash and Short-Term Investments - Total Receivables - Total Inventories - Total Current Assets - Other - Total 763 854 0 4,060 424 564 0 4,797 0 4,405 Current Assets Total 5,678 5,784 5,272 Non-Current Assets 337 Property Plant and Equipment - Total (Net) Intangible Assets - Total Non-Current Assets - Other - Total 409 2,182 398 394 955 35 715 56 Non-Current Assets Total 2,998 1,679 1,562 ASSETS TOTAL 8,676 7,464 6,834 Liabilities and Shareholders' Equity Income Statement All numbers in millions of US Dollars 2018 (05/31/19) 2017 (05/31/18) 2016 (05/31/17) Sales/Turnover (Net) 3,773 3,381 3,151 Cost of Goods Sold Gross Profit (Loss) 996 2,776 880 2,501 793 2,359 Selling, General and Administrative Expenses 1,218 1,076 992 Operating Income Before Depreciation 1,558 1,426 1,367 Depreciation and Amortization - Total 182 138 127 Operating Income After Depreciation 1,377 1,288 1,240 18 14 Interest and Related Expense Non-operating Income (Expense) Total Interest Income - Total Special Items Income (Expense) Pretax Income 13 12 13 10 -5 -- 1,368 1,296 1,245 Expense (Credit) Income Taxes Expense (Credit) Minority Interest - Income Account NET INCOME 1,034 934 817 All numbers in millions of US Dollars 2018 2017 2016 (05/31/19) (05/31/18) (05/31/17) Liabilites Current Liabilities 76 75 57 Debt in Current Liabilities Account Payable/Creditors - Trade Income Taxes Payable Current Liabilities - Other 0 0 4,769 5,213 4,668 Current Liabilities Total 4,845 5,287 4,725 Long-Term Liabilities Long-Term Debt Total Deferred Taxes and Investment Tax Credit Liabilities (Other) 796 223 192 0 49 103 152 34 119 Long-Term Liabilities Total 1,212 153 Liabilities Total 6,057 5,439 4,878 Minority Interest - Balance Sheet 0 Shareholders' Equity 0 0 0 Preferred/Preference Stock (Capital) - Total Common/Ordinary Equity - Total Shareholders' Equity Total 2,620 2,025 1,955 LIABILITIES AND SHAREHOLDERS' EQUITY TOTAL 8,676 7,464 6,834 Paychex, Inc (PAYX) Balance Sheet All numbers in millions of US Dollars 2018 2017 2016 (05/31/19) (05/31/18) (05/31/17) Assets Current Assets 323 543 Cash and Short-Term Investments - Total Receivables - Total Inventories - Total Current Assets - Other - Total 763 854 0 4,060 424 564 0 4,797 0 4,405 Current Assets Total 5,678 5,784 5,272 Non-Current Assets 337 Property Plant and Equipment - Total (Net) Intangible Assets - Total Non-Current Assets - Other - Total 409 2,182 398 394 955 35 715 56 Non-Current Assets Total 2,998 1,679 1,562 ASSETS TOTAL 8,676 7,464 6,834 Liabilities and Shareholders' Equity