Use the following balance sheets and income statements for Valero Energy Corporation to answer the requirements VALERO ENERGY CORPORATION AND SUBSIDIARIES Consolidated Statements of Income (Millions of Dollars) 209 20X8 $ 87,804 Operating revenues $75,659 Costs and expenses: Cost of sales 65,962 73,861 Refining expenses (747) 790 Retail expenses. 4,207 4,243 Ethanol expenses 715 710 General and administrative expenses 1,894 1,842 56 0 Depreciation and amortization expense Click Save and Submit to sae and submit. Click Save All Ansuers to save all answers. Save All Answers hp O 7 E R T K D F G N M B Asset impairment losses 72,087 81,446 Total costs and expenses 3,572 6,358 Operating income Other income, net 46 56 (446) (433) Interest and debt expense Income from continuing operations before income tax 5,971 3,182 expense 1,870 765 Income tax expense 4,101 2,417 Net income (loss) Less: Net income (loss) attributable to noncontrolling interests 111 128 2,289 3,990 Net income attributable to Valero Energy stockholders VALERO ENERGY CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets 20X8 20X9 (Millions of Dollars) $4,114 $4,816 Cash and temporary cash investments 5 901 4 464 Receivables net Click Save and Submit to save and submit. Click Save All Answers to saue all answers Save All Answe hp E R H G F D M N C Consolidated Balance Sheets 20X9 20X8 (Millions of Dollars) $4,114 $4,816 Cash and temporary cash investments 5,901 4,464 Receivables, net 5,898 5,709 Inventories 218 58 Income taxes receivable 316 204 Prepaid expenses and other 16,800 14,898 Total current assets 26,703 26,472 Property, plant and equipment, net 2,626 2,901 Deferred charges and other assets, net 44,227 46,173 Total assets 127 115 Current portion of debt and capital lease obligations 4,907 6,357 Accounts payable 554 694 Accrued expenses 1,069 1.084 Taxes other than income taxes 337 78 Income taxes navable Click Save and Submit to save and submit. Click Save All Answers to saue all answers Save All Answe hp & R T E K G F D M N V 78 337 Income taxes payable 8328 6,994 Total current liabilities 7,886 7,208 Debt and capital lease obligations, less current portion 7,060 7,361 Deferred income taxes 1,611 1,744 Other long-term liabilities 22,873 25,319 Total liabilities 7 Common stock 7,064 7,088 Additional paid-in capital (12,027) (10,799) Treasury stock Retained earnings 25,188 26,366 (933) (1,410) Accumulated other comprehensive income (loss) 20,527 20,024 Total Valero Energy stockholders' equity 827 830 Noncontrolling interest 21,354 20.854 Total equity S 44,227 46,173 Total liabilities and stockholders' equity Click Save and Submit to save and submit. Click Save All Answers to saue all answers. Save All Answers hp 44 R E K H G F D N 20,024 20,527 Total Valero Energy stockholders' equity 830 827 Noncontrolling interest 20,854 21,354 Total equity $ 46,173 $ 44,227 Total liabilities and stockholders' equity Required: a Compute Valero's return on equity (ROE) for 20X9 and 20X8. Valero Energy stockholders' equity in 20X7 was $20,677 million. b Compute the profit margin (PM), asset turnover (AT), and financial leverage (FL) components of the basic DuPont model. Show that ROE = PMx AT FL for 20X9. Total assets were $45,550 million in 20X7 Which component(s) explain the year over year change in Valero's ROE? T ET 3 (12pt) T Aial Click Save and Submit to save and submit. Click Sve All Ansusers to save all ansuers Save All Answers hp R E H D M N C