CVS Health Corporation Income Statement For Years Ended December 31 (All numbers in millions) Sales Cost of goods sold Gross profit Operating expenses other than depreciation Earnings before interest, taxes, and depreciation 2020 $270,000 220,000 50,000 36,000 14,000 2019 $255,000 210,000 45,000 33,000 12,000 Depreciation expense Earnings before interest and taxes Interest expense Earnings before taxes Tax expense Earnings after taxes 4,400 9,600 3,000 6,600 1,320 4,300 7,700 3,000 4,700 893 SS.280 $2.8oz Tax rate in 2020 was 20.0%. Tax rate in 2019 was 19.0%. CVS Health Corporation Balance Sheet December 31 (All numbers are in millions) 2020 2019 Assets Current assets Cash Receivables Inventory Total current assets Property, plant, and equipment Total assets Debt and Stockholders' Equity Current debt Accts payable Notes payable $ 11,000 28,000 17,000 56,000 175,000 $231.000 $8,000 27,000 15,000 50,000 172,000 $222.000 $49,000 10,000 $43,000 8,000 Accruals 4,000 2,000 Total current debt 63,000 53,000 Long-term debt 98,000 105,000 Total debt 161,000 158,000 Stockholders' equity Capital stock 46,000 46,000 Treasury stock -28,000 -28,000 Retained earnings 52,000 46,000 Total stockholders' equity 70,000 64,000 Total debt and stockholders' equity $231.000 $222.000 Additional Information: 1. CVS Health Corporation has 1,300,000,000 shares of common stock outstanding. The market value per share is $74. 2. CVS Health Corporation's cost of money is 5%. 3. Cash dividends per share are expected to be $2.00. Required: All calculations need to be in context of figures provided above. (8 pts.) a). Calculate the 2020 DuPont Identity and discuss what the DuPont Identity reveals. (6 pts.) b). Calculate the inventory-holding period and the receivables holding period for 2020. Discuss what these two metrics indicate. (6 pts.) c). Calculate the current ratio and the quick ratio for 2020. Discuss what these ratios indicate. (6 pts.) d). Calculate the debt to equity ratio and the times interest earned ratio for 2020. Discuss what these ratios indicate. (9 pts.) e). Calculate the free cash flow for 2020. What is the significance of free cash flow? (5 pts.) f). Calculate MVA for 2020. Explain what MVA indicates