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I need help answering this question. All info needed to answer is provided. 5. Analyzing eBay Inc. Financial Statements:| Answer the following questions using the

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5. Analyzing eBay Inc. Financial Statements:| Answer the following questions using the enclosed financial statements of eBay Inc. a) Did eBay paid dividends in 2018? Yes: No If yes, what was the amount? Explain your answer and source of the information (which statement(s) and section(s)). b) Did eBay repurchased stock in 2018? Yes: No: If yes: How many share? What was the average purchase price? Record the journal entry for the repurchase of stock. Debit Credit Explain your answer and source of the information (which statement(s) and section(s)).c} If you answered yes to part a andfor b above, what was the source of the money? Explain your answer and source of the information (which statement[s) and section[s}) d} What portion of e Bay's total assets is nanced by liabilities? 201% 2018: e) What portion of e Bay's total assets is nanced by total debt? 201% 2018: f] Compute eBay's liabilities to equity ratio for 2017 and 2018: 2017: 2018: g} Compute eBay's total debt to equity ratio for 2017 and 2018: 201?: 2018: h} Offer an interpretation for your ndings above: i) eBay's total assets in 2018 is lower than in 2017 by 12.2%. Analyze its financial statements and offer an explanation for this change, support your answer using information from the financial statements. j) eBay's total assets on 12/31/2016 was $23,847 million. Compute eBay's return on assets (ROA) for 2017 and 2018? 2017: 2018: k) Disaggregate ROA into Profit Margin (PM) and Assets Turnover (AT) for 2017 and 2018: PM 2017: AT 2017: PM 2018: AT 2018: 1) eBay's total stockholders' equity on 12/31/2016 was $10,539 million. Compute eBay's return on equity (ROE) for 2017 and 2018: 2017: 2018: m) Disaggregate ROE into ROA and Financial Leverage (FL) for 2017 and 2018: ROA 2017: FL 2017:_ ROA 2018: FL 2018:eBay Inc. CONSOLIDATED BALANCE SHEET December 31, 2018 2017 (In millions, except par value) ASSETS Current assets: Cash and cash equivalents $ 2,202 $ 2,120 Short-term investments 2,713 3,743 Accounts receivable, net 712 696 Other current assets 1,499 1,185 Total current assets 7,126 7,744 Long-term investments 3,778 6,331 Property and equipment, net 1,597 1,597 Goodwill 5,160 4,773 Intangible assets, net 92 69 Deferred tax assets 4,792 5,199 Other assets 274 273 Total assets $ 22,819 $ 25,986 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term debt S 1,546 $ 781 Accounts payable 286 330 Accrued expenses and other current liabilities 2,335 2,134 Deferred revenue 170 137 Income taxes payable 117 177 Total current liabilities 4,454 3,559 Deferred tax liabilities 2,925 3,424 Long-term debt 7,685 9,234 Other liabilities 1,474 1,720 Total liabilities 16,538 17,937 Commitments and contingencies (Note 11) Stockholders' equity: Common stock, 50.001 par value; 3,580 shares authorized; 915 and 1,029 shares outstanding 2 2 Additional paid-in capital 15,716 15,293 Treasury stock at cost, 763 and 632 shares (26,394) (21,892) Retained earnings 16,459 13,929 Accumulated other comprehensive income 498 717 Total stockholders' equity 6,281 8,049 Total liabilities and stockholders' equity $ 22,819 25,986eBay Inc. CONSOLIDATED STATEMENT OF INCOME Year Ended December 31, 2018 2017 2016 (In millions, except per share amounts) Net revenues S 10,746 $ 9,927 $ 9,298 Cost of net revenues 2,382 2,221 2,004 Gross profit 8,364 7,706 7,294 Operating expenses: Sales and marketing 3,391 2,878 2,691 Product development 1,285 1.224 1,114 General and administrative 1, 131 1,030 899 Provision for transaction losses 286 272 231 Amortization of acquired intangible assets 49 38 34 Total operating expenses 6, 142 5.442 4,969 Income from operations 2,222 2,264 2,325 Interest and other, net 496 11 1,326 Income from continuing operations before income taxes 2,718 2,275 3,651 Income tax benefit (provision) (190) (3,288) 3,634 Income (loss) from continuing operations S 2,528 (1,013) $ 7,285 Income (loss) from discontinued operations, net of income taxes (4) (19) Net income (loss) 2,530 $ (1,017) $ 7,266 Income (loss) per share - basic: Continuing operations S 2.58 $ (0.95) $ 6.43 Discontinued operations (0.02) Net income (loss) per share - basic S 2.58 (0.95) $ 6.41 Income (loss) per share - diluted: Continuing operations 2.55 5 (0.95) $ 6.37 Discontinued operations 0.02 Net income (loss) per share - diluted S 2.55 0.95) $ .35 Weighted average shares: Basic 980 1.064 1,133 Diluted 991 1,064 1, 144 eBay Inc. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year Ended December 31, 2018 2017 2016 In millions Net income (loss) S 2,530 S (1,017) $ 7.266 Other comprehensive income (loss), net of reclassification adjustments: Foreign currency translation adjustment (286) 978 (185 Unrealized gains (losses) on investments, net (41) (66) (794) Tax benefit (expense) on unrealized gains (losses) on investments, net 10 23 314 Unrealized gains (losses) on hedging activities, net 125 (111) 18 Tax benefit (expense) on unrealized gains (losses) on hedging activities, net (27) 17 (3) Other comprehensive income (loss), net of tax (219) 841 650) Comprehensive income (loss) 2,311 (176) 6,616eBay Inc. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Year Ended December 31, 2018 2017 2016 (In millions) Common stock: Balance, beginning of year $ 2 S 2 2 Common stock issued Common stock repurchased/forfeited Balance, end of year 2 2 Additional paid-in-capital: Balance, beginning of year 15,293 14.907 14.538 Common stock and stock-based awards issued 109 120 102 Tax withholdings related to net share settlements of restricted stock awards and units (225) (219) (121) Stock-based compensation 538 484 416 Stock-based awards tax impact 5 Other (33) Balance, end of year 15,716 15.293 14,907 Treasury stock at cost Balance, beginning of year 21,892) (19,205) (16,203) Common stock repurchased (4,502) (2,687 (3,002) Balance, end of year (26,394) 21,892) (19,205) Retained earnings: Balance, beginning of year 13,929 14,946 7,713 Net income (loss) 2.530 (1,017) 7,266 Cumulative effect of accounting change (13) Distribution of PayPal (20) Balance, end of year 16,459 13,929 14,946 Accumulated other comprehensive income (loss): Balance, beginning of year 717 (124) 526 Change in unrealized gains (losses) on investments (41) (66) (794) Change in unrealized gains (losses) on derivative instruments 125 (111 ) 18 Foreign currency translation adjustment (286) 978 (185) Tax benefit (provision) on above items (17) 40 311 Balance, end of year 498 717 124) Total stockholders' equity 6,281 8,049 $ 10,526 Number of shares Common stock - shares outstanding: Balance, beginning of year 1,029 1,087 1,184 Common stock issued 17 24 22 Common stock repurchased/forfeited (131) (82) (119) Balance, end of year 915 1,029 1,087CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended December 31 2018 2017 2016 (In millions) Cash flows from operating activities: Net income (loss) 5 2.530 (1,017) S 7,266 (Income) loss from discontinued operations, net of income taxes (2) 19 Adjustments: Provision for transaction losses 286 272 231 Depreciation and amortization 698 876 882 Stock-based compensation 538 483 418 (Gain) Loss on investments, net (572) 40 (1.235) Gain on sale of business (167) Deferred income taxes (153) 1.728 (4.556) Change in fair value of warrant (104) Other 19 (15) Changes in assets and liabilities, net of acquisition effects Accounts receivable (98) (195) (48) Other current assets (143) (148) 23 Other non-current assets 108 19 94 Accounts payable (47) 19 (28) Accrued expenses and other liabilities (437) 206 130) Deferred revenue 33 Income taxes payable and other tax liabilities 7 1.209 105 Net cash provided by continuing operating activities 2.681 3,146 2.827 Net cash used in discontinued operating activities (3) (1) Net cash provided by operating activities 2.658 3.146 2.826 Cash flows from investing activities: Purchases of property and equipment (651) (686) (626) Purchases of investments (28.115) (14.599) (11,212) Maturities and sales of investments 30.901 14,520 10,063 Equity investment in Flipkart (514) Proceeds from sale of equity investment in Flipkart 1.029 Acquisitions, net of cash acquired (302) (34) (212) Other 32 (2) (30) Net cash provided by (used in) investing activities 2.894 (1.295) (2.017) Cash flows from financing activities: Proceeds from issuance of common stock 109 120 102 Repurchases of common stock (4.502) (2.748 (2,943) Tax withholdings related to net share settlements of restricted stock awards and units (225) (219) (121) Proceeds from issuance of long-term debt, net 2.484 2.216 Repayment of debt (750) (1.452) (20) Other (30) 29 22 Net cash used in financing activities 5.398) (1,784) 744) Effect of exchange rate changes on cash, cash equivalents and restricted cash (75) 238 (90) Net increase (decrease) in cash, cash equivalents and restricted cash 79 305 (25) Cash, cash equivalents and restricted cash at beginning of period 2.140 1.835 1.860 Cash, cash equivalents and restricted cash of continuing operations at end of period 2.219 2.140 1.835Supplemental cash flow disclosures: Cash paid for: Interest 314 5 285 220 Income taxes 597 S 308 S 492 Noncash investing activities: Relinquishment of equity method investment 268 S - Sale of business in exchange for ownership interest in Flipkart 5 211 5

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