Table 1. Biogen Inc. and Subsidiaries Consolidated Statements of Income (in millions) For the year ended December 31 2015 2014 2013 2012 2011 Revenues Total Revenues 14208.22 12808.36 9150.50 7281.78 6664.15 Cost and Expenses: Cost of sales, ex Amortization 1637.33 1545.72 1132.16 720.06 616.18 R&D 2656.90 2499.29 1906.21 1762.07 1609.87 SG&A 2789.29 2946.64 2259.97 1686.30 1394.05 Amortization of intangibles 505.03 646.54 452.63 266.90 275.35 Restructuring charges 123.29 2.90 25.08 Collaboration of profit sharing 112.73 419.63 419.50 (Gain) loss on fair value measurement 40.26 -51.35 -0.66 35.90 47.65 Total Cost and Expenses 7752.10 7586.83 5863.04 4893.77 4387.68 Gain on sale of rights 22.18 32.87 61.78 Income from operations 6456.12 5243.70 3320.33 2449.79 2276.47 Other income (expenses), net -163.28 -34.06 -46.07 -0.92 -17.82 Income before income taxes 6292.84 5209.64 3274.26 2448.86 2258.65 income tax expense 1533.31 1306.67 793.32 621.19 586.74 Equity in loss of investee, net of tax 16.50 19.93 22.70 5.94 Net income 4743.02 3883.04 2458.24 1821.73 1671.91Table 2. Biogen Inc. and Subsidiaries Consolidated Balance Sheets (in millions) For the year ended December Currentass Cash 82 cash equivalent 1635. 00 1506.12 753. 25 713. 37 643.12 Marketabl securities II. A/R, net 1533. 75 1615. 50 1030. 50 858. 50 730. 75 756.25 Due from 393. 125 315.875 285. 87 Inventory 1116.75 1005.00 823.75 w 408.50 361.25 Other current assets 1046.12 387.25 170.00 180.75 Total current assets ----B Marketable securities 3450.5 1838.37 782.25 2545.875 1770.87 PP&E. net 2734.5 2207.12 2188.37 2177.75 1964.25 2052.50 Intangible assets. net 5106.375 5593.37 2039.37 2010.25 2216.25 Goodwill 3329.75 w 1541.12 1501.62 1432.87 1432.50 Investments and other assets 1384.50 943.25 743.00 414.37 Total assets 17893.3 14829.1 10115.0 24381.00 7 2 0 Current portion of LTD 3.88 4.13 Taxes payable 260.88 210.13 m 25.13 57.38 .............1. m 28.... 27.... M20315 Accrued exp. and other 2621.00 2272.13 1694.00 1224.88 846.50 Total current N} P and other L................. 15.... mm 27.... 310.75 Other long-term Total long-term Total liabilities 12662.38 4375.33 w 3957.33 m Common stock, par $0.0005 0.13 0.13 0.13 0.13 0.13 Mother Retained .... Treasury stock, a Total Biogen Non-controlling interests 0.75 2.88 1.88 Total Liabilities & Equity 24331.00 17893.33 1.432 9.13 Required: 1. Calculate return on equity, ROE (please use average equity) using the three-factor Dupont Analysis approach. Use the following table to develop your analysis. (20 Marks) Ra 201 201 201 201 201 tio 5 4 3 2 1 S ROE Dupont Analysis (decomposition): (1) (2) (3) 2. Discuss and interpret the reasons of the overall trends in ROE for the five-year period with an emphasis on the 2014/15 periods. (10 Marks)