PLEASE SHOW EVERY STEP OF WORK FOR EACH QUESTION

C$.$ Obsaining Important Cash Flow Information from the Financial Statements

Compute the Change in the Net Working Capital of the company in the most recent year

Compute the Net Capital Spending of the company in the most recent year

Financial Statement Analysis

Construct a Common Size Income Statement for your company in the most recent period

Construct a Common Size Income Statement for your company for the prior period

Evaluate which eosts have risen and which have fallen by comparing $g\frac{.}{?}$ and $g\mathrm{.}2$

Construct a Common Size Balance Sheet for your company in the most recent period.

Compute the ROE for your company in the most reeent year and compare it to the prior year $($and determine if performance has improved$)$

Compare the ROE for your company in the most recent year to the expected return on your stock in $\frac{C}{\text{I}}$ and indicate whether that comparison indicates your company has been successful in earning the retum required by shareholders $($and thus whether your company has been generating positive net present value for its shareholdes$).$

Compute the Market$/$Book Value of your company's stock and explain what this ratio means.

Compute the Times Interest Earned $($TIE$)$ for your company and explain what this ratio means to a creditor.

h$.$ Financial Forecasting

Construct a Pro Forma Income Statement for your company for the next year, assuming that Sales grow $15\%$ next year $($and assuming all costs go up with sales$)$

Construct an unbalanced Pro Forma Balance Sheet for your company for the next year, assuming that Sales grow $15\%$ next year $($and assuming that all assets and liabilities grow with sales but equity grows only by the amount of the proforma net income computed in $h.n.$

Determine the net external funding need or surplus from $h\mathrm{.}2($without considering any dividends to be paid to shareholders$).$

Use h$.3$ to determine if your company needs to sell new shares of stock and or bonds $($or whether your company can pay dividends and$/$or engage in stock repurchases$)$

Determine what external funding would be needed if sales declined by $3\%$ next year, assuming all current liabilities have to be paid off $($and are not refinanced$)$ while the long$-$term liabilities are constant, all assets are unchanged, any dividend is eliminated, and the net profit margin drops to $-1\%($i$.$e$.,$ costs exceed revenues by $1\%,$ and the company suffers negative income$)$

U$=10$

COMPANY$=$ KR $-$ The Kroger Co$.$

PLEASE WRITE DOWN STEP BY STEP NOTES FOR EACH ANSWER