1. Here are the financial statements we used in class. These statements are assumed to come from a firm within the same year. You should use average of indices when it is applicable. (30 scores)

   1. Please calculate ROA, ROC, and ROE from the statements here.

   2. Please calculate the current ratio and explain what it means.

   3. What is the average collection period? (Hint: average daily sale comes from the annual sale.)

   4. What is the growth rate of dividend? And please estimate the present value of the stock if the shares outstanding are 5000 shares and market interest rate is 20%. (Hint: please get the plowback ratio from the income statement.)

   5. What is the annual present value of tax shield for this firm?

End of Fiscal 2012 2011 End of Fiscal 2012 2011 Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets 2,494 1,395 10,710 773 15,372 1,987 1,252 10,360 866 14,465 Liabilities and Shareholders' Equity Current liabilities Debt due for repayment Accounts payable Other current liabilities Total current liabilities 1,321 8,871 1,270 11,462 30 8,173 1,183 9,386 Fixed assets Tangible fixed assets Property, plant, and equipment Less accumulated depreciation Net tangible fixed assets Long-term debt Deferred income taxes Other long-term liabilities 9,475 319 2,051 10,798 212 2,161 38,491 14,422 24,069 37,059 12,738 24,321 Total liabilities 23,307 22,557 Intangible asset (goodwill) Long-term investments Other assets 1,170 140 333 1,267 138 551 Shareholders' equity Common stock and other paid-in capital Retained earnings Treasury stock Total shareholders' equity 8,433 20,038 -10,694 17,777 7,649 17,246 -6,710 18,185 Total assets 41,084 40,742 Total liabilities and shareholders' equity 41,084 40,742 $ Million 74,754 48,912 16,305 1,684 % of Sales 100.0 65.4 21.9 2.3 Net sales Cost of goods sold Selling, general, & administrative expenses Depreciation Earnings before interest and income taxes (EBIT) Interest expense Taxable income Taxes Net income Allocation of net income Dividends Addition to retained earnings 7,853 632 7,221 2,686 4,535 10.5 0.8 9.7 3.6 6.1 1,743 2,792 2.3 3.7 Cash provided by operations Net income 4,535 Depreciation 1,684 Changes in working capital items Decrease increase) in accounts receivable - 143 Decrease (increase) in inventories -350 Decrease (increase) in other current assets 93 Increase (decrease) in accounts payable 698 Increase (decrease) in other current liabilities 87 Total decrease (increase) in working capital 385 Cash provided by operations 6,604 Cash flows from investments Cash provided by (used for) disposal of (additions to) property, plant, and equipment 1,432 Sales (acquisitions) of other long-term assets 313 Cash provided by (used for) investments -1,119 Cash provided by (used for) financing activities Additions to (reduction in) short-term debt 1,291 Additions to (reduction in) long-term debt -1,323 Dividends -1,743 Issues of stock 784 Repurchases of stock -3,984 Other -3 Cash provided by (used for) financing activities -4,978 Net increase (decrease) in cash and cash equivalents 507