For the Chapter 4 problems, show all work in an Excel book, labeling each item by the problem number Save the file in the format flastname Unit 1 Learning Activity xlsx, where flastname is your first initial and your last name, and submit it to the appropriate Dropbox For full credit, be sure to use appropriate formulas to solve each exercise or problem Star Inc has Year 1 revenues of $80 million, net income of $9 million, assets of $65 million, and equity of $40 million, as well as Year 2 revenues of $87 million, net income of $22 million, assets of $70 million, and equity of $50 million Calculate Stars return on equity (ROE) for each year based on the DuPont method and compare it with a direct ROE measure Next, explain why the firms ROE changed between Year 1 and Year 2 Nextime Ltd has operating profits (EBIT) of $87 million, a tax rate of 35 , net working capital of $129 million, and fixed assets of $285 million Calculate Nextimes return on invested capital, or ROIC Then, describe three methods by which a firm can increase its ROIC Fixem Co has revenue of $125 million, property and equipment of $42 million, and accumulated depreciation and amortization of $6 million Estimate the fixed asset turnover ratio Wally Wholesale has revenue of $487,000, end of year receivables of $112,000, account payables of $70,000, and inventory of $91,000 Assume purchases equal cost of sales of $372,000 Estimate Wally Wholesales age of inventory, age of receivables, and age of payables Quick E Inc s current assets consist of cash of $5 million, account receivables of $27 million, inventory of $37 million, and it has current liabilities of $48 million Calculate Quick Es current ratio and quick ratio Deb Co has interest bearing debt of $122 million, noninterest bearing debt of $33 million, and equity of $76 million Calculate Deb Co s debt to assets, debt to equity, and long term debt to capital ratios IOU Inc has EBIT of $58,000, depreciation and amortization of $12,000, interest expenses of $21,000, principal repayments of $17,000, and a tax rate of 35 Calculate IOU Inc s interest coverage ratio and debt service coverage ratio

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For the Chapter 4 problems, show all work in an Excel book, labeling each item by the problem number. Save the file in the format

For the Chapter 4 problems, show all work in an Excel book, labeling each item by the problem number. Save the file in the format flastname_Unit_1_Learning_Activity.xlsx, where flastname is your first initial and your last name, and submit it to the appropriate Dropbox. For full credit, be sure to use appropriate formulas to solve each exercise or problem.

Star Inc. has Year 1 revenues of $80 million, net income of $9 million, assets of $65 million, and equity of $40 million, as well as Year 2 revenues of $87 million, net income of $22 million, assets of $70 million, and equity of $50 million. Calculate Stars return on equity (ROE) for each year based on the DuPont method and compare it with a direct ROE measure. Next, explain why the firms ROE changed between Year 1 and Year 2.
Nextime Ltd. has operating profits (EBIT) of $87 million, a tax rate of 35%, net working capital of $129 million, and fixed assets of $285 million. Calculate Nextimes return on invested capital, or ROIC. Then, describe three methods by which a firm can increase its ROIC.

Fixem Co. has revenue of $125 million, property and equipment of $42 million, and accumulated depreciation and amortization of $6 million. Estimate the fixed asset turnover ratio.
Wally Wholesale has revenue of $487,000, end-of-year receivables of $112,000, account payables of $70,000, and inventory of $91,000. Assume purchases equal cost of sales of $372,000. Estimate Wally Wholesales age of inventory, age of receivables, and age of payables.
Quick-E Inc.s current assets consist of cash of $5 million, account receivables of $27 million, inventory of $37 million, and it has current liabilities of $48 million. Calculate Quick-Es current ratio and quick ratio.
Deb Co. has interest-bearing debt of $122 million, noninterest-bearing debt of $33 million, and equity of $76 million. Calculate Deb Co.s debt-to-assets, debt-to-equity, and long-term debt-to-capital ratios.
IOU Inc. has EBIT of $58,000, depreciation and amortization of $12,000, interest expenses of $21,000, principal repayments of $17,000, and a tax rate of 35%. Calculate IOU Inc.s interest coverage ratio and debt service coverage ratio.