Refer to financial information in the spreadsheet "Exam 1 financials.xlsx", which contains financial statements for two semiconductor companies, Texas Instruments Inc. (ticker: TXN) and QUALCOMM Inc. (ticker: QCOM). 9. Compute Texas Instruments' Net Working Capital for both fiscal years. (2 points) 10. Compute Texas Instruments' Free Cash Flow for the most recent fiscal year. (4 points) 11. Which firm uses its assets more efficiently? Use the Total Asset Turnover ratio and explain your answer. (3 points) 12. Calculate each firm's Return on Assets for the most recent fiscal year. (3 points) 13. Why do the firms have different ROA? Use the DuPont formula and explain what is driving the difference. (4 points) Texas Instruments Incorporated (TXN) Income Statement Sales Cost Of Goods Gross Profit Selling & Admin Expenses Depreciation Earnings Before Interest & Taxes Non-Operating Income Interest Expense Pretax income Income Taxes Net Income 2019 14,383 5.219 9,164 2,391 1,050 5,723 175 170 5,728 711 5,017 2018 15,784 5,507 10277 2,610 954 6,713 98 125 6.686 1.106 5,580 QUALCOMM Incorporated (QCOM) Income Statement Sales Cost Of Goods Gross Profit Selling & Admin Expenses Depreciation Earrings Before Interest & Taxes Non-Operating Income Interest Expense Pretax income Income Taxes Net Income 2019 24,273 8,599 15 674 6.403 1 604 7,667 441 627 7,481 3,095 4,380 2018 22.732 10,244 12,488 9.912 1,834 742 539 768 513 5.377 -4.864 2019 2018 2019 2018 Balance Sheet Assets Cash & Equivalents Receivables Inventories Other Current Assets Total Current Assets Net Property & Equipment Other Non-Current Assets Total Assets Liabilities Accounts Payable Current Portion Long Term Debt Accrued Expenses Other Current Liabilities Tot Current Liabities Long-Term Debt Other Non.Current Liabile 5387 1074 2.001 299 8.761 3,372 5.885 18.018 4233 1,207 2.217 440 8,097 3,272 5.920 17.137 Balance Sheet Assets Cash & Equivalents Receivables nventories Other Current Assets Total Current Assets Net Property & Equipment Other Non Current Assets Total Assets Liabilities Accounts Payable Current Portion Long Term Debt Accrued Expenses Other Current Liabilities Total Current Liabilities Long-Term Debt Other Non.Current Liabilities 12.260 2,471 1,400 634 16,765 3,081 13.111 32.957 120BB 2.904 1,693 699 17384 2,975 5.367 32.686 388 500 1,180 46 2.123 478 740 1.144 103 1,368 2.400 1.048 4,023 8,935 13.437 5.670 1,625 100 1,081 7325 11,236 2,474 5,309 4,319 15.365 10249 Sheet1 9,111 8.143 28,048 31,758 0 Total Liabilities Shareholders Equity Common Stock (Par) Capital Surplus Retained Earnings Other Equity Treasury Stock Total Shareholder's Equity Total Liabilities & Equity 1,741 2.110 39,898 -347 34,495 8,907 18,018 1,741 1,950 37,906 -473 32,130 8.994 17,137 Total Liabilities Shareholders Equity Common Stock (Par) Capital Surplus Retained Earnings Other Equity Treasury Stock Total Shareholder's Equity Total Liabilities & Equity 343 0 4,466 100 0 4,909 32,957 0 663 265 0 928 32,686 2018 Other Data Capital Expenditures 2019 817 All items in millions of dollars
