I need answers to questions 14, 16 and 17. PDF attached.

Questions, Exercises, and Problems a. Compute the rate of return on equity for each year. b. Disaggregate the rate of return on equity into profit margin, total assets turnover, and financial leverage ratio components. c. How has the profitability of Mobilex changed over the three years? 14. Profitability analysis for two companies. The following data show four items from the financial statements of two companies for a recent year (amounts in millions of US$): Company A For Year Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average During Year Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shareholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Company B $3,750 476 $6,143 934 2,458 2,256 5,594 2,566 a. Compute the rate of return on assets for each company. Disaggregate the rate of return on assets into profit margin and total assets turnover components. b. Compute the rate of return on equity for each company. Disaggregate the rate of return on equity into profit margin, total assets turnover, and financial leverage ratio components. c. The two companies are a manufacturer of brand-name motorcycles and an operator of specialty retail coffee shops, primarily in rented facilities. Which of the companies corresponds to A and B? What clues did you use in reaching your conclusions? 15. Profitability analysis for two companies. The following data show four items from the financial statements of two companies for a recent year (amounts in millions of US$): Company A For Year Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average During Year Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Shareholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Company B $38,334 6,986 $93,469 6,999 52,010 39,757 187,882 49,558 a. Compute the rate of return on assets for each company and disaggregate ROA into profit margin and total assets turnover components. b. Compute the rate of return on equity for each company and disaggregate ROE into profit margin, total assets turnover, and capital structure leverage components. c. The two companies are a developer and manufacturer of semiconductors and a telecommunication service company. Which of the companies corresponds to A and B? What clues did you use in reaching your conclusions? 16. Analyzing accounts receivable for two companies. The annual reports of Delta, Inc. and SunnyDay Company, two manufacturers of computers, reveal the information below for the current year (amounts in millions). Delta sells custom-order personal computers, primarily to individuals. SunnyDay sells higher-end computers and Internet software, primarily to businesses. Delta Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts Receivable, January 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts Receivable, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a. Compute the accounts receivable turnover for each company. SunnyDay $61,133 6,152 7,693 $13,873 2,702 2,964 259 260 Chapter 7 Introduction to Financial Statement Analysis b. Compute the average number of days that accounts receivable are outstanding for each company. c. Why do the accounts receivable turnovers of these two companies differ? 17. Analyzing inventories over three years. The following information relates to the activities of Funtime, Inc., a manufacturer of toys (amounts in millions of euros): 2013 Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012 2011 5,970 3,193 406 5,650 3,038 380 5,179 2,806 415 a. Compute the inventory turnover for each year. b. Compute the average number of days that inventories are held each year. c. Compute the cost of goods sold to sales percentage for each year. d. How well has Funtime managed its inventories over the three years? 18. Analyzing fixed-asset turnover over three years. The following information relates to Mickey Group, an entertainment company (amounts in millions of pounds sterling): 2013 Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenditures on Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012 2011 35,510 16,270 1,566 1,491 33,747 16,174 1,299 1,436 31,374 15,362 1,823 1,339 a. Compute the fixed-asset turnover for each year. b. How well has Mickey Group managed its investment in fixed assets over the three years? 19. Calculating and interpreting short-term liquidity ratios. Data taken from the financial statements of FleetSneak, a designer and manufacturer of athletic footwear and apparel, appear as follows (amounts in millions of US$): For the Year 2013 2012 2011 $16,326 9,165 1,492 1,879 $14,955 8,368 1,392 1,668 $13,740 7,624 1,212 1,571 2013 2012 2011 2010 Cash and Marketable Securities . . . . . . . . . . . . . . . . . . Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Current Assets . . . . . . . . . . . . . . . . . . . . . . . $ 2,847 2,495 2,122 613 $ 8,077 $ 2,303 2,383 2,077 583 $ 7,346 $ 1,825 2,262 1,811 453 $ 6,351 $ 1,229 2,120 1,650 529 $ 5,528 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . Bank Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . Total Current Liabilities. . . . . . . . . . . . . . . . . . . . . $ 1,040 131 1,413 $ 2,584 $ $ $ Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cash Flow from Operations . . . . . . . . . . . . . . . . . . . . . On May 31 952 299 1,362 $ 2,613 775 76 1,148 $ 1,999 780 153 1,098 $ 2,031 a. Compute the current and quick ratios on May 31 of each year. b. Compute the cash flow from operations to current liabilities ratio and the accounts receivable, inventory, and accounts payable turnover ratios for 2011, 2012, and 2013. c. How has the short-term liquidity risk of FleetSneak changed during the three-year period? 20. Calculating and interpreting short-term liquidity ratios. Data taken from the financial statements of Geneva S.A., a consumer foods company headquartered in Switzerland, appear as follows (amounts in millions of euros)