f. Calculate the 2018 price/earnings ratio, price/cash flow ratio, and market/book ratio. Do these ratios indicate that investors are expected to have a high or low opinion of the company?

g. Perform a common size analysis and percentage change analysis. What do these analyses tell you about Computron? (For part g, use the 2 most recent years.)

h. Use the extended DuPont equation to provide a summary and overview of Computrons financial condition as projected for 2018. What are the firms major strengths and weaknesses?

i. What are some potential problems and limitations of financial ratio analysis?

j. What are some qualitative factors that analysts should consider when evaluating a companys likely future financial performance?

BRINKER INTERNATIONAL, INC. Consolidated Balance Sheets (In thousands, except share and per share amounts) June 27, 2018 June 28, 2017 ASSETS Current Assets: Cash and cash equivalents Accounts receivable, net Inventories Restaurant supplies Prepaid expenses $ 10,872 $ 9,064 53,659 24,242 46,724 20,787 44,658 24,997 46,380 19,226 Total current assets 156,284 144.325 Property and Equipment, at Cost Land Buildings and leasehold improvements Furniture and equipment Construction-in-progress 153,953 149,098 1,673,310 1,655,227 713,228 722,041 22,16 21,767 2,539,320 2,571,465 (1,632,536) Less accumulated depreciation and amortization (1,538,706) Net property and equipment 938.929 1,000,614 Other Assets: Goodwill 163,808 33,613 23,977 30,729 252,127 163,953 37,029 Deferred income taxes, net Intangibles, net 27,512 Other 30,200 Total other assets 258,694 1,403,633 Total assets $ 1,347,340 $ LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities: Current installments of long-term debt Accounts payable Gift card liability Accrued payroll 7,088 9,649 104,662 119,147 74,505 104,231 126,482 70,281 Other accrued liabilities 127,200 111,515 Income taxes payable 1,738 14,203 Total current liabilities 434,340 1,499,624 131,685 436,361 Long-term debt, less current installments Other liabilities 1,319,829 141,124 Commitments&Contingencies (Note 8 and Note 13) Shareholders' Deficit Common stock-250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 40,797,919 shares outstanding at June 27, 2018, and 176,246,649 shares issued and 48,440,721 shares outstanding at June 28, 2017 Additional paid-in capital Accumulated other comprehensive loss Retained earnings 17,625 511,604 (5,836) 2,683,033 3,206,426 17,625 502,074 (11,921) 2,627,073 3,134,851 Less treasury stock, at cost (135,448,730 shares at June 27, 2018 and 127,805,928 shares at June 28, 2017) (3,924,735) (3,628,532) Total shareholders' deficit (718,309) (493,681) 1,403,633 Total liabilities and shareholders' deficit $ 1,347,340 $ BRINKER INTERNATIONAL, INC Consolidated Statements of Comprehensive Income (In thousands, except per share amounts) Fiscal Years Ended June 27, 2018 June 29, 2016 June 28, 2017 Revenues: Company sales $ 3,041,516 $ 3,062,579$ 3,166,659 Franchise and other revenues 93,901 88,258 90,830 Total revenues 3,150,837 3,135,417 3,257,489 Operating costs and expenses: Company restaurants (excluding depreciation and amortization) Cost of sales 796,007 791,321 840,204 Restaurant labor 1,033,853 1,017,945 1,036,005 757,547 762,663 Restaurant expenses 773,510 Company restaurant expenses 2,587,407 2,582,776 2,638,872 151,392 Depreciation and amortization 156,409 156,368 General and administrative 136,012 132,819 127,593 Other gains and charges 34,500 22,655 17,180 Total operating costs and expenses 2,940,013 2,909,311 2,894,659 Operating income 317,476 226,106 256,178 32,574 Interest expense 58,986 49,547 Other, net (3,102) (1,877) (1,485) Income before provision for income taxes 170,222 208,508 286,387 Provision for income taxes 44,340 57,685 85,767 200,620 Net income 125,882 $ 150,823 $ Basic net income per share 2.75 3.47 2.98 $ Diluted net income per share 2.72 $ 2.94 3.42 Basic weighted average shares outstanding 45,702 50,638 57,895 Diluted weighted average shares outstanding 46.264 51,250 58,684 Other comprehensive income (loss): (2,964) Fore ign currency translation adjustment 186 $ (327) $ (2,964 (327) Other compre hensive income (loss) 186 Comprehensive income 126,068 $ 150,496 $ 197,656 Dividends per share 1.52 $ 1.36 1.28 A A A BRINKER INTERNATIONAL, INC. Consolidated Balance Sheets (In thousands, except share and per share amounts) June 27, 2018 June 28, 2017 ASSETS Current Assets: Cash and cash equivalents Accounts receivable, net Inventories Restaurant supplies Prepaid expenses $ 10,872 $ 9,064 53,659 24,242 46,724 20,787 44,658 24,997 46,380 19,226 Total current assets 156,284 144.325 Property and Equipment, at Cost Land Buildings and leasehold improvements Furniture and equipment Construction-in-progress 153,953 149,098 1,673,310 1,655,227 713,228 722,041 22,16 21,767 2,539,320 2,571,465 (1,632,536) Less accumulated depreciation and amortization (1,538,706) Net property and equipment 938.929 1,000,614 Other Assets: Goodwill 163,808 33,613 23,977 30,729 252,127 163,953 37,029 Deferred income taxes, net Intangibles, net 27,512 Other 30,200 Total other assets 258,694 1,403,633 Total assets $ 1,347,340 $ LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities: Current installments of long-term debt Accounts payable Gift card liability Accrued payroll 7,088 9,649 104,662 119,147 74,505 104,231 126,482 70,281 Other accrued liabilities 127,200 111,515 Income taxes payable 1,738 14,203 Total current liabilities 434,340 1,499,624 131,685 436,361 Long-term debt, less current installments Other liabilities 1,319,829 141,124 Commitments&Contingencies (Note 8 and Note 13) Shareholders' Deficit Common stock-250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 40,797,919 shares outstanding at June 27, 2018, and 176,246,649 shares issued and 48,440,721 shares outstanding at June 28, 2017 Additional paid-in capital Accumulated other comprehensive loss Retained earnings 17,625 511,604 (5,836) 2,683,033 3,206,426 17,625 502,074 (11,921) 2,627,073 3,134,851 Less treasury stock, at cost (135,448,730 shares at June 27, 2018 and 127,805,928 shares at June 28, 2017) (3,924,735) (3,628,532) Total shareholders' deficit (718,309) (493,681) 1,403,633 Total liabilities and shareholders' deficit $ 1,347,340 $ BRINKER INTERNATIONAL, INC Consolidated Statements of Comprehensive Income (In thousands, except per share amounts) Fiscal Years Ended June 27, 2018 June 29, 2016 June 28, 2017 Revenues: Company sales $ 3,041,516 $ 3,062,579$ 3,166,659 Franchise and other revenues 93,901 88,258 90,830 Total revenues 3,150,837 3,135,417 3,257,489 Operating costs and expenses: Company restaurants (excluding depreciation and amortization) Cost of sales 796,007 791,321 840,204 Restaurant labor 1,033,853 1,017,945 1,036,005 757,547 762,663 Restaurant expenses 773,510 Company restaurant expenses 2,587,407 2,582,776 2,638,872 151,392 Depreciation and amortization 156,409 156,368 General and administrative 136,012 132,819 127,593 Other gains and charges 34,500 22,655 17,180 Total operating costs and expenses 2,940,013 2,909,311 2,894,659 Operating income 317,476 226,106 256,178 32,574 Interest expense 58,986 49,547 Other, net (3,102) (1,877) (1,485) Income before provision for income taxes 170,222 208,508 286,387 Provision for income taxes 44,340 57,685 85,767 200,620 Net income 125,882 $ 150,823 $ Basic net income per share 2.75 3.47 2.98 $ Diluted net income per share 2.72 $ 2.94 3.42 Basic weighted average shares outstanding 45,702 50,638 57,895 Diluted weighted average shares outstanding 46.264 51,250 58,684 Other comprehensive income (loss): (2,964) Fore ign currency translation adjustment 186 $ (327) $ (2,964 (327) Other compre hensive income (loss) 186 Comprehensive income 126,068 $ 150,496 $ 197,656 Dividends per share 1.52 $ 1.36 1.28 A A A