CASE $1$

Part $1$:

Congratulations! You are a highly sought after airline executive. In fact, two companies are competing to hire you as their new CEO, United Airlines

and Delta Airlines. Both are interesting opportunities to you and you are struggling to make a decision. You have decided that you will base your

decision upon your analysis of the companies' financial statements.

Please use the $3-$factor DuPont structure to compare the companies' results from $2016,2017,$ and $2018.$ Based upon the results of your analysis,

please explain which job you have chosen.

Part $2$:

You are now the CEO of the airline you have selected. You have decided that you want to grow revenues by $20\%$ in $2019.$ Using the Percentage of

Sales method, please prepare pro forma financial statements for $2019$ and determine the external financing you will need, if any, to reach your

goal. Use the same dividend payout ratio as your firm used in $2018$ and assume the companies' fixed assets are at $90\%$ capacity relative to their $2018$

sales.

What plug variable would you adjust to make your balance sheet balance? Why?

How will your firm's per$-$share value of owners' equity change from $2018$ to $2019?$

Submission: This project is due by $11$:$59$ pm on Sunday, February $4,2024.$ Upload an Excel file $($only two sheets, one for the DuPont Analysis and one

for the Proforma Financial Statements $-$ answer the relevant questions at the bottom of each sheet$).$ Please format your models elegantly and use

formulas where appropriate. To reiterate, I will only review the first two sheets of your Excel file. You will be graded using the rubric provided below.