NFT Corporation 2018 Statement of comprehensive income ($ in millions)
Sales	$10,850
Costs of goods sold	$8,410
Depreciation	$190
EBIT	$2,250
Interest	$165
EBT	$2,085
Taxes	$710
Net income	$1,375
Dividends paid	$300
Addition to retained earnings	$1,075

NFT Corporation Statement of financial position Years ended 2017 and 2018 ($ in millions)
	2017	2018		2017	2018
Cash	$980	$960	Accounts payable	$950	$730
Accounts rec.	$950	$880	Notes payable	$40	$150
Inventory	$2,120	$1,750	Total	$990	$880
Total	$5,050	$3,590	Long-term debt	$2,225	$100
Fixed assets	$1,700	$2,540	Common stock	$2,030	$3,570
			Retained earnings	$505	$1,580
Total assets	$5,750	$6,130	Total liabilities and Owners equity	$5,750	$6,130

Unit 4 Exercise Questions

1. The industry in which RTF Corporation operates has an industry average of 23% for earnings before taxes. In 2018 is NTF outperforming or underperforming the industry and why?(25 marks)
2. Calculate the turnover ratios and comment on the performance of the company.(25 marks)
3. Calculate the leverage ratios and comment on the performance of the company.(25 marks)
4. Calculate ROE according to Du Pont approach and explain the sources of ROE for the company.(25 marks)