7.24 421 2011 moodle.hsu.edu.hk 28 0 Question 1 Selected financial statement data from Texas Telecom, Inc, for Years 5 and 9 are reproduced below (5 millions): Year 5 Year 9 Income Statement Data Revenues $542 $979 Operating income 35 68 Interest expense. 7 Pretax income 28 68 Income taxes 14 34 Net income 14 34 Required: Balance Sheet Data Long-term operating assets. $ 52 $ 63 1. Calculate ROE and disaggregate using Working capital 123 157 DuPont analysis for year 5 and 9. Assume Total liabilities 50 0 the balance sheet numbers are averages. Total shareholders' equity II. Comment on the individual components disaggregated. 125 220 2