Please refer to the Excel File . There are three tabs: 1. Income Statement and Balance Sheet. Use those statements to construct a 2. Cash Flow Statement 3. Use the financial data on the third tab (FS Analysis) and use this sheet to record your answers.

a. Calculate the length of the cash conversion cycle for CVS for 2020 b. Calculate the length of the cash conversion cycle for Walgreens for 2020 c. Which of the three components of the cash conversion cycle accounts most for the difference between the firms? d. What would happen to the cash conversion cycle if net sales increased but average accounts receivables remained the same? e. Calculate the ROA for CVS for 2020 f. Calculate the ROA for Walgreens for 2020 g. Disaggregate the ROA for CVS for 2020 h. Disaggregate the ROA for Walgreens for 2020 i. Which of the two components of ROA is more responsible for the difference between the two firms? j. Calculate the ROE for CVS for 2020 k. Calculate the ROE for Walgreens for 2020 l. Disaggregate the ROE for CVS for 2020 m. Disaggregate the ROE for Walgreens for 2020 n. What would happen to ROE if a firm used borrowed funds to purchase more assets? o. Conduct a horizontal trend analysis of CVSs Sales and Cost of Sales beginning with 2017. Compare both and what, as an analyst, would you conclude? p. Conduct a horizontal trend analysis of Walgreens Sales and Cost of Sales beginning with 2017. Compare both and what, as an analyst, would you conclude?

Income Statement & Bal Sht Cash Flow Statement FS Analysis Your Name: Use these financial statements and the additonal information to construct a Cash Flow Statement on the next sheet. Short Money, Inc Income Statement For the Year Ended 30 April 2025 (in Millions) Short Money, Inc Comparative Balance Sheets 30-Apr 2025 2024 $890 Net Sales Cost of Goods Sold Operating Expenses Operating Income $468 221 201 Interest Expense 12 Assets Cash Accounts Receivable Inventory Prepaid Expenses Land Buildings Accum Dep-Buildings Equipment Accum Dep-Equipment Total Assets $54 68 54 4 45 200 (21) 193 (28) 569 $37 26 0 o 6 6 70 200 (11) 68 (10) 386 2 3 Other Gains (Losses). Loss on Sale of Equipment Gain on Sale of Land Income from Operations Income Tax Expense Net Income 190 65 $125 Liabilities & Stockholders' Equity Accounts Payable Bonds Payable Common Stock ($1 Par) Retained Earnings Total Liab & Equity $33 110 220 206 569 $40 150 60 136 386 Additional Information a) Operating Expenses include depreciation expense of $33,000 and the expiration of prepaid expenses of $2,000 b) Land was sold at $3,000 above its book value c) Cash dividend of $55,000 were declared and paid d) Interest expense of $12,000 was paid in cash e) Equipment with a cost of $166,000 was purchased for cash. Other equipment with a cost of $41,000 and a book value of $36,000 was sold for $34,000 cash f) Bond were redeemed at their book value for cash Common stock ($1 par) was issued for cash Income Statement & Bal Sht Cash Flow Statement FS Analysis Your Name: Use these data to answer questions and record those answers on the Word file provided. CVS 2.080 2.019 2.018 2.017 Sales 268.706 256.776 194.579 184.765 Cost of Sales 219.660 211.248 163.041 156.220 Gross Profit 49.046 45.628 31.538 28.545 Operating Expenses 35,135 33,541 21.368 19.088 Operating Income 13.911 11.987 10.170 9.517 Interest Expense 2.907 3.035 2.619 1.068 Net Income Before Taxes 9.770 8.997 1,406 8.268 Tax Provisions 2.569 2.366 2.002 1.637 Net Income After Taxes 7.201 6.631 (596) 6.631 Cash & Cash Equivalents 7.854 5.683 4.059 1.696 Short Term Investments 3.000 2.373 2.522 111 Accounts Receivable 7.101 6.717 6.896 13.181 Inventory 18.496 17.616 16.450 15.296 Current Assets 56.369 50.302 46.213 31.229 Non-Current Assets 174.346 172.147 151.813 63.902 Accumulated Depreciation 18.700 16.890 16.620 13.998 Total Assets 230.715 222.449 196.466 96.131 Accounts Payable 11.138 10.493 8.926 8.863 Total Current Liabilities 62.017 53.303 44.009 30.648 Non-Current Liabilities 98.997 104.976 93.904 26.788 Total Liabilities 161.014 158.279 137.913 67.436 Shareholders' Equity 89.389 63.864 58.226 37.891 Retained Larnings 49.640 46.108 40.911 43.556 Common Stock 46.513 45.972 45.440 17 # of shares of Common Stock 1.310 1.302 1.295 1.014 Ellective Income Tax Rate 20,00% 20,00% 20,00% 20,00% Depreciation 4.441 4.371 2.718 2.479 Free Cash Flow 13.428 10.391 6.828 8.089 Dividends Declared and Paid - Common 2.624 2.603 2.038 2.049 Divideritis Declared and Paid - Preferred 0 0 0 0 Cash Flow from Operating Activities 15.865 12.848 8.885 8.007 Cash Flows from Investing Activities (5.534) (3.339) (43.285) (2.932) Cash Flows from Financing Activities (8.155 (7.850) 36.819 (6.751) Net Increase (Decrease) in Cash 2.176 1.659 2.399 (1.676) Walgreens 2.020 2019 139.537 136.866 111.520 106.790 28.017 30,076 27.045 25.242 972 4.834 639 704 743 4.527 360 588 383 3.939 516 1.023 0 O 7.132 7.886 9.451 9.333 18.073 18.700 69.101 48.899 12.456 11.310 87.174 67.598 14.458 14.341 27.070 25.769 38.968 17.677 66.038 43.446 20.837 23.612 34.210 38.815 12.000 12.000 866.804 896.388 20,009 % 20,00% 1.927 2.038 4.110 3.892 1.747 1.643 0 0 5.484 5.594 (1.297) (2.307) (4.647) (3.047) (460) 240 2.018 131.537 100.745 30.792 24.569 6.223 616 5.975 998 4.977 785 0 6.573 9.565 17.846 50.278 10.513 68.134 13.666 21.667 19.768 41.436 26.007 33.561 12.000 952.133 20,00% 1.77C 6.898 1.739 0 8.265 (5.501) (5.295) (2.531) 2.017 118.214 89.052 29.162 23.740 5.422 693 4.853 760 4.093 3.301 0 6.528 8.899 19.763 46.266 9.318 66.009 12.494 18.647 19.188 37.736 27.466 30.137 12.000 1.023.849 20.00% 1.654 5.900 1.723 O 7.251 (843) (12.934) (6.526) Income Statement & Bal Sht Cash Flow Statement FS Analysis Your Name: Use the information on the previous sheet to construct a Cash Flow Statelment Short Money, Inc Cash FlowStatement For the Year Ended 30 April 2025 (in millions) Income Statement & Bal Sht Cash Flow Statement FS Analysis Your Name: Use these financial statements and the additonal information to construct a Cash Flow Statement on the next sheet. Short Money, Inc Income Statement For the Year Ended 30 April 2025 (in Millions) Short Money, Inc Comparative Balance Sheets 30-Apr 2025 2024 $890 Net Sales Cost of Goods Sold Operating Expenses Operating Income $468 221 201 Interest Expense 12 Assets Cash Accounts Receivable Inventory Prepaid Expenses Land Buildings Accum Dep-Buildings Equipment Accum Dep-Equipment Total Assets $54 68 54 4 45 200 (21) 193 (28) 569 $37 26 0 o 6 6 70 200 (11) 68 (10) 386 2 3 Other Gains (Losses). Loss on Sale of Equipment Gain on Sale of Land Income from Operations Income Tax Expense Net Income 190 65 $125 Liabilities & Stockholders' Equity Accounts Payable Bonds Payable Common Stock ($1 Par) Retained Earnings Total Liab & Equity $33 110 220 206 569 $40 150 60 136 386 Additional Information a) Operating Expenses include depreciation expense of $33,000 and the expiration of prepaid expenses of $2,000 b) Land was sold at $3,000 above its book value c) Cash dividend of $55,000 were declared and paid d) Interest expense of $12,000 was paid in cash e) Equipment with a cost of $166,000 was purchased for cash. Other equipment with a cost of $41,000 and a book value of $36,000 was sold for $34,000 cash f) Bond were redeemed at their book value for cash Common stock ($1 par) was issued for cash Income Statement & Bal Sht Cash Flow Statement FS Analysis Your Name: Use these data to answer questions and record those answers on the Word file provided. CVS 2.080 2.019 2.018 2.017 Sales 268.706 256.776 194.579 184.765 Cost of Sales 219.660 211.248 163.041 156.220 Gross Profit 49.046 45.628 31.538 28.545 Operating Expenses 35,135 33,541 21.368 19.088 Operating Income 13.911 11.987 10.170 9.517 Interest Expense 2.907 3.035 2.619 1.068 Net Income Before Taxes 9.770 8.997 1,406 8.268 Tax Provisions 2.569 2.366 2.002 1.637 Net Income After Taxes 7.201 6.631 (596) 6.631 Cash & Cash Equivalents 7.854 5.683 4.059 1.696 Short Term Investments 3.000 2.373 2.522 111 Accounts Receivable 7.101 6.717 6.896 13.181 Inventory 18.496 17.616 16.450 15.296 Current Assets 56.369 50.302 46.213 31.229 Non-Current Assets 174.346 172.147 151.813 63.902 Accumulated Depreciation 18.700 16.890 16.620 13.998 Total Assets 230.715 222.449 196.466 96.131 Accounts Payable 11.138 10.493 8.926 8.863 Total Current Liabilities 62.017 53.303 44.009 30.648 Non-Current Liabilities 98.997 104.976 93.904 26.788 Total Liabilities 161.014 158.279 137.913 67.436 Shareholders' Equity 89.389 63.864 58.226 37.891 Retained Larnings 49.640 46.108 40.911 43.556 Common Stock 46.513 45.972 45.440 17 # of shares of Common Stock 1.310 1.302 1.295 1.014 Ellective Income Tax Rate 20,00% 20,00% 20,00% 20,00% Depreciation 4.441 4.371 2.718 2.479 Free Cash Flow 13.428 10.391 6.828 8.089 Dividends Declared and Paid - Common 2.624 2.603 2.038 2.049 Divideritis Declared and Paid - Preferred 0 0 0 0 Cash Flow from Operating Activities 15.865 12.848 8.885 8.007 Cash Flows from Investing Activities (5.534) (3.339) (43.285) (2.932) Cash Flows from Financing Activities (8.155 (7.850) 36.819 (6.751) Net Increase (Decrease) in Cash 2.176 1.659 2.399 (1.676) Walgreens 2.020 2019 139.537 136.866 111.520 106.790 28.017 30,076 27.045 25.242 972 4.834 639 704 743 4.527 360 588 383 3.939 516 1.023 0 O 7.132 7.886 9.451 9.333 18.073 18.700 69.101 48.899 12.456 11.310 87.174 67.598 14.458 14.341 27.070 25.769 38.968 17.677 66.038 43.446 20.837 23.612 34.210 38.815 12.000 12.000 866.804 896.388 20,009 % 20,00% 1.927 2.038 4.110 3.892 1.747 1.643 0 0 5.484 5.594 (1.297) (2.307) (4.647) (3.047) (460) 240 2.018 131.537 100.745 30.792 24.569 6.223 616 5.975 998 4.977 785 0 6.573 9.565 17.846 50.278 10.513 68.134 13.666 21.667 19.768 41.436 26.007 33.561 12.000 952.133 20,00% 1.77C 6.898 1.739 0 8.265 (5.501) (5.295) (2.531) 2.017 118.214 89.052 29.162 23.740 5.422 693 4.853 760 4.093 3.301 0 6.528 8.899 19.763 46.266 9.318 66.009 12.494 18.647 19.188 37.736 27.466 30.137 12.000 1.023.849 20.00% 1.654 5.900 1.723 O 7.251 (843) (12.934) (6.526) Income Statement & Bal Sht Cash Flow Statement FS Analysis Your Name: Use the information on the previous sheet to construct a Cash Flow Statelment Short Money, Inc Cash FlowStatement For the Year Ended 30 April 2025 (in millions)