Consider the following extracts from an annual report:

Quistion 5 Consider the following extracts from an annual report: Table 1. Blogen Inc. and Subsidiaries Consolidated Statements of Income (in millions} For the year ended December 31 Total Revenues Cost of sales. ext. Amortization 1483.48 1405.20 123.13 2415.36 2272.08 1732.52 1601.88 1463.52 56% 2535.72 2678.76 2175452 1533.01} 1267.32 Amortizaon of Intangibles 455.12 587.76 411.43 242.64 250.32 Restructuring charges Collaboration of prot sharing - - 102.48 331.48 331.36 (Gain) loss on fair value measurement 36.60 46.63 41.60 32.64 43.32 Total Cost and Expenses 7047.36 6897.12 5330.04 4448.88 3988.8 Gain on sale of rights 20.16 29.88 56.16 Income from operations 5869.20 4767 3018.48 2227.08 2069.52 Other income (expenses), net -148.44 -30.96 -41.88 -0.84 -16.20 Income before income taxes 5720.76 4736.04 2976.6 2226.24 2053.32 income tax expense 1393.92 1187.88 721.2 564.72 533.40 Equity in loss of investee, net of tax 15.00 18.12 20.64 5.40 Net income 4311.84 3530.04 2234.76 1656.12 1519.92 Table 2. Biogen Inc. and Subsidiaries Consolidated Balance Sheets (in millions) For the year ended December 31 2015 2014 2013 2012 2011 2010 Current assets Cash & cash equivalents 1635 1506.125 753.25 713.375 643.125 Marketable securities 2650.625 800.625 775.25 1418.75 1470.125 A/R, net 1533.75 1615.5 1030.5 858.5 730.75 756.25 Due from uncons. 393.125 354.25 315.875 335.5 285.875 Inventory 1116.75 1005 823.75 559.25 408.5 361.25Inventory 1116.75 1005 823.75 559.25 408.5 361.25 Other current assets 1046.125 387.25 282.625 170 180.75 Total current assets 8375.375 5668.75 3981.125 4055.375 3719.25 Marketable securities 3450.5 1838.375 782.25 2545.875 1770.875 PP&E, net 2734.5 2207.125 2188.375 2177.75 1964.25 2052.5 Intangible assets, net 5106.375 5035.625 5593.375 2039.375 2010.25 2216.25 Goodwill 3329.75 2200.25 1541.125 1501.625 1432.875 1432.5 Investments and other assets 1384.5 943.25 743 342.625 414.375 Total assets 24381 17893.375 14829.125 12662.625 11312 10115 Current liabilities Current portion of LTD 6.00 3.88 4.38 566.75 4.13 Taxes payable 260.88 210.13 224.63 25.13 57.38 Accounts payable 334.25 286.50 274.88 255.00 233.00 203.75 Accrued exp. and other 2621.00 2272.13 1694.00 1224.88 846.50 Total current liabilities 3222.13 2772.63 2197.88 2071.75 1141.13 N/P and other financing 8151.88 725.38 740.50 859.25 1326.00 Long-term def. taxes 156.13 65.25 290.75 271.63 310.75Long-term def. taxes 156.13 65.25 290.75 271.63 310.75 Other long-term liabilities 1132.25 812.63 824.00 755.38 500.38 Total long-term liabilities 9440.25 1603.25 1855.25 1886.13 2137.13 Total liabilities 12662.38 4375.88 4053.13 3957.88 3278.25 Required: 1. Calculate return on equity, ROE (please use average equity) using the three-factor Dupont Analysis approach. Use the following table to develop your analysis. (20 Marks) Ratios 2015 2014 2013 2012 2011 ROE Dupont Analysis (decomposition): (1) (2) (3) 2. Discuss and interpret the reasons of the overall trends in ROE for the five-year period with an emphasis on the 2014/15 periods.(10 Marks)