Data: Use SEC EDGAR or another resource to obtain financial statements and notes for the following firms and fiscal year-ends. You can use their 10-K's or annual reports. Company Exchange: Ticker Fiscal year end Amgen, Inc. NASDAQ: AMGN December 31, 2021 Amgen, Inc. NASDAQ: AMGN December 31, 2020 Note: If the 10-K for the fiscal year ended 12/31/2021 is not available, please use the financial statements provided in Amgen's earnings announcement press release from 2/7/2022 at Document (sec.gov). See pages 2 (dividends paid), 18 (income statement), 19 (balance sheet), and 23 (cash flows). . 1. Calculate the following ratios and performance measures for Amgen, Inc. (AMGN) for fiscal years 2020 and 2021. For fiscal 2021, also calculate the ratios under the assumption that AMGN took out long-term debt on 12/31/2021 to keep the dollar amount of Cash and cash equivalents plus Marketable securities constant from 12/31/2020 through 12/31/2021. Assume only increases in Cash and Long-term debt no change in Marketable securities, Interest expense, or Interest paid. (66: 2 points per ratio) If stock market data is necessary, please find it online (e.g., finance.yahoo.com) and use the closing price on the last day up to/before the fiscal year end. For ratios, follow the formatting given in the Sample Format column. For other EPS and free cash flows, write the number using the units used in the firm's financial statements (e.g., $/share, $millions, or $thousands), and omit commas and dollar signs ($). Where applicable, use average values rather than beginning or ending balances (e.g., for ROE, ROA, Asset turnover, and financial leverage = Assets/Equity). For Leverage (Liabilities/Equity) and the quick ratio (Cash and cash equivalents + marketable securities + Net A/R (Trade receivables), divided by CL), use ending balances For free cash flows, use CFO - CapEx, Note that ROE = ROA*Financial Leverage Use Total revenues' where applicable. . = . AMGN (2021) Constant cash AMGN (2021) as reported AMGN (2020) Sample format 1.2% Return on Assets (ROA) Return on Equity (ROE) Asset Turnover 2.3% 4.5% Net Profit Margin 6.7% Gross Margin 7.8% Financial Leverage 8.98 Quick Ratio 9.81 Leverage 1.23 3.45 ($s) Earnings per share (Basic EPS from continuing operations) Free cash flows 8910 ($M) 2.3 Price to earnings ratio (using basic EPS) A. Based on the ratios you calculated above and other relevant information in Amgen's financial statements, compare Amgens financial performance and condition for fiscal 2021 versus 2020. Please provide 3 high-level observations. (6 points; 2 per observation) B. Based on the ratios you calculated above and other relevant information in Amgen's financial statements, comment on the effects of additional borrowing to hold Amgen's Cash, cash equivalents, and marketable securities constant in 2021. Please provide 3 high-level observations. (6 points; 2 per observation) Data: Use SEC EDGAR or another resource to obtain financial statements and notes for the following firms and fiscal year-ends. You can use their 10-K's or annual reports. Company Exchange: Ticker Fiscal year end Amgen, Inc. NASDAQ: AMGN December 31, 2021 Amgen, Inc. NASDAQ: AMGN December 31, 2020 Note: If the 10-K for the fiscal year ended 12/31/2021 is not available, please use the financial statements provided in Amgen's earnings announcement press release from 2/7/2022 at Document (sec.gov). See pages 2 (dividends paid), 18 (income statement), 19 (balance sheet), and 23 (cash flows). . 1. Calculate the following ratios and performance measures for Amgen, Inc. (AMGN) for fiscal years 2020 and 2021. For fiscal 2021, also calculate the ratios under the assumption that AMGN took out long-term debt on 12/31/2021 to keep the dollar amount of Cash and cash equivalents plus Marketable securities constant from 12/31/2020 through 12/31/2021. Assume only increases in Cash and Long-term debt no change in Marketable securities, Interest expense, or Interest paid. (66: 2 points per ratio) If stock market data is necessary, please find it online (e.g., finance.yahoo.com) and use the closing price on the last day up to/before the fiscal year end. For ratios, follow the formatting given in the Sample Format column. For other EPS and free cash flows, write the number using the units used in the firm's financial statements (e.g., $/share, $millions, or $thousands), and omit commas and dollar signs ($). Where applicable, use average values rather than beginning or ending balances (e.g., for ROE, ROA, Asset turnover, and financial leverage = Assets/Equity). For Leverage (Liabilities/Equity) and the quick ratio (Cash and cash equivalents + marketable securities + Net A/R (Trade receivables), divided by CL), use ending balances For free cash flows, use CFO - CapEx, Note that ROE = ROA*Financial Leverage Use Total revenues' where applicable. . = . AMGN (2021) Constant cash AMGN (2021) as reported AMGN (2020) Sample format 1.2% Return on Assets (ROA) Return on Equity (ROE) Asset Turnover 2.3% 4.5% Net Profit Margin 6.7% Gross Margin 7.8% Financial Leverage 8.98 Quick Ratio 9.81 Leverage 1.23 3.45 ($s) Earnings per share (Basic EPS from continuing operations) Free cash flows 8910 ($M) 2.3 Price to earnings ratio (using basic EPS) A. Based on the ratios you calculated above and other relevant information in Amgen's financial statements, compare Amgens financial performance and condition for fiscal 2021 versus 2020. Please provide 3 high-level observations. (6 points; 2 per observation) B. Based on the ratios you calculated above and other relevant information in Amgen's financial statements, comment on the effects of additional borrowing to hold Amgen's Cash, cash equivalents, and marketable securities constant in 2021. Please provide 3 high-level observations. (6 points; 2 per observation)