P2.2The Sherwin-Williams Company: Review the time-series of various rates of return and rates of return com ponents for the Sherwin-Williams Company in Exhibit P2.2. (Sherwin-Williams manufactures, distributes, and sells coatings and related products in North America and South America. It operates four segments: paint stores, consumer, automotive finishes, and international coatings.) a. Discuss the change in the return on assets in the time-series using its components b. Discuss the change in the return on equity in the time-series using its components. c. Why does the return on equity increase much more than the return on assets during this time period? d. Why is the return on equity less than the return on assets in Year 6? EXHIBIT P2.2 Rates of Return and Components for the Sherwin-Williams Company Sherwin-Williams om pary, Return on assets Return on equity bear 1 9.9% 17.7% Year 2",Year. Year 4, Years 10.0% 23.7% 2.37 YearS Year 6 YearZ 8.1% 17.8% 2.21 Year 8 9.5% 17.5% 1.84 8.8% 17.4% 1.97 7.8% 16.5% 2.10 8.4% 17.8% 2.11 1.4% 1.0% 0.74 9.5% 22.0% 2.31 Year 10 10.6% 25.3% 2.39 unlevered profit margin 6.2% 5.9% 6.3% 6.4% 6.8% 1.0% 5.9% 6.5% 6.6% 6.9% Levered profit margin 6.1% 5.5% 5.3% 5.5% 6.1% 0.3% 5.2% 6.0% 6.1% 6.4% Revenue to average total assets..1.60 Total assets to common equity ...1.8 1.972.352.45 2.382.462.49 2.50 2.54 2.56 1.61 1.39 1.22 1.23 1.34 1.37 1.47 1.52 1.54 P23Dell Inc.: Review the time-series of various working capital management ratios for Dell Inc. (formerly Dell Computer Corporation) in Exhibit P2.3. (Dell designs, develops, manufactures, and sells computer systems and services around the world.) a. Discuss the change in Dell's current and quick ratios over the time-series. Is this change "good" or "bad" b. Using Dell's component ratios, discuss the change in Dell's trade cash cycle over the time-series for Dell? In other words, should Dell try to reverse the trend in its time-series of current and quick ratios? EXHIBIT P2.3 Dell Inc Current assets to current Working Capital Management Ratios for Dell Inc. Year 1 Year 2 Year3 Year4 Year 5 Year 6 Year 7 Year8 Year-9 Year 10 2.1 1.5 1.3 5.7 1.0 0.8 7.8 1.2 5.4 29.9 74.7 1.2 1.5 0.8 0.8 20.5 38.3 46.8 Days of sales held in inventory.... Accounts receivable 31.4 9.3 35.4 51.4 6.6 39.7 52.4 4.9 30.2 67.5 6.4 25.0 68.9 37.3 31.9 27.4 Accounts payable payment 54.1 10.8 56.6 72.2 12.0 6.8 6.1 19.0 -32.4 37.5 37.0-39.5