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Ubercrummie and Glitch (U&G) is an apparel company that owns several unrecognizable brands. Therefore, we will not mention them. Comparative balance sheet information for Year
Ubercrummie and Glitch (U&G) is an apparel company that owns several unrecognizable brands. Therefore, we will not mention them. Comparative balance sheet information for Year 1 and Year 2 and income statement information for Year 2 are presented below:
\begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Ubercrummie and Glitch Corporation } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline \multicolumn{2}{|c|}{ (amounts in thousands) } \\ \hline & Year Ended December \\ \hline Net sales & \multicolumn{1}{|c|}{ Year 2 } \\ \hline Royalty income & 11537740 \\ \hline Total revenues & 117313 \\ \hline Costs and operating expenses: & \\ \hline Cost of goods sold & 6341056 \\ \hline Marketing, administrative, and general expenses & 3086080 \\ \hline Total operating expenses & 9427136 \\ \hline Operating income & 2227917 \\ \hline Interest income & 4803 \\ \hline Interest expense & -110773 \\ \hline Other income (expense), net & 34847 \\ \hline Income before income taxes & 2156794 \\ \hline Income taxes & 539199 \\ \hline Net income & 1617595 \\ \hline Net (income) loss attributable to noncontrolling interests & -17 \\ \hline Net income attributable to U\&G Corporation & 1617578 \\ \hline \end{tabular} At the of Year 2, U & G stock was trading at $75 per share. At end of Year 1 the share price was $60.
Requirements: Compute each of the following metrics for Year 2:
All dollar amounts should be rounded to the nearest dollar (e.g., $123,456). All percentages should be rounded to two decimal places (e.g., 45.68%). All ratios and nondollar quantities should be rounded to two decimal places (e.g., 1.25).
1. Net financing obligations
2. Common equity
3. NOPAT
4. Net financing expense (after tax)
5. Operating ROA
6. Leverage
7. Net borrowing rate
8. Spread
9. Altmans Z-Score
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