Royal Corps financial information (in millions, except for Dividends) for Problems 2 and 3:

2019 2018 Accounts Payable $ 7,000 $ 6,780

Accounts Receivable 5,000 4,685

Additional Paid-in Capital 4,000 4,000

Cash 8,577 5,654

Common Stock 3,107 3,107

Cost of Goods Sold 48,464 47,594

Depreciation 1,315 1,244

Dividends per share 1.53 1.28

Goodwill 18,051 19,121

Interest Expense 1,200 1,100

Inventory 8,871 8,101

Long-Term Debt ? ?

Net Property, Plant & Equipment 26,500 25,311

Notes Payable 4,200 3,770

Research & Development Expense 1,847 1,747

Retained Earnings ? 23,045

Revenue 61,200 59,000

Selling General & Admin Expense 3,200 3,024

Shares Outstanding 1,170 1,280

Treasury Stock (6,500) (4,200)

Tax Rate = 30%

Note that a reduction in Goodwill would be similar to Depreciation Expense in a firms Operating Cash Flow.

3A. Royal Corp is most likely a:

1. Bank
2. Distributor
3. Hospital
4. Manufacturer
5. Start-up Biotech

3B. Describe the evaluation you performed to determine your answer in 3A.

3C. At what Stage of Firm Life Cycle is Royal? Be very specific and support your answer.

3D. Royal has made many acquisitions over the years. Can we tell if they made any acquisitions in 2019? Why or why not?

3E. How much stock (in $$ amount, not number of shares) did Royal repurchase in 2019?