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use the information about SyncTech, Inc . provided below. SyncTech B/S (in $ thousand): FYE 2055 FYE 2054 Cash & cash equivalents $ 882,210 $

use the information about SyncTech, Inc. provided below. 

SyncTech B/S (in $ thousand): 

 FYE 2055 FYE 2054 
Cash & cash equivalents 

$ 882,210

$ 571,250

Receivables 

771,580

775,250

Inventories 

1,320,150

1,254,600

Other current assets 

 249,000

 231,200

Net property, plant & equipment

1,118,750

1,100,300

Intangibles 

263,050

241,000

Deposits & other long-term assets 

184,500

168,250

 

 

 

  Total assets 

$4,789,240

$4,341,850

 

 

 

Accounts payable

$1,178,540 

$1,061,100 

Short-term debt

18,100 

316,500 

Accrued expenses 

803,000 

724,300 

Long-term debt

478,250 

378,400 

Other long-term liabilities

13,350 

 0  

 

 

 

Preferred stock

850,000 

850,000 

Common stock 

1,448,000 

1,011,550 

 

 

 

  Total liab. & equity  

$4,789,240 

$4,341,850 

 

 

 

 

SyncTech I/S (in $ thousand): 

 FY 2055 

Net sales

11,455,500 

  Cost of goods sold

(8,026,450)

Gross profits 

3,429,050

  Selling, general & admin. exp. 

(1,836,400)

EBITDA 

1,592,650

  Depreciation & amortization

(785,250)

  Interest expense

(46,195)

Income before tax

761,205

  Income taxes 

(157,725)

Net income

$603,480

 

 

 

SyncTech additional information:

            Number of common shares (weighted average): 308,515 thousand shares            
            Preferred dividends:                                                $85,000 thousand 

 

 

 

Use the information about SyncTech, Inc. provided above to answer the following. 

 

a. Compute the firm's ROCE for FY 2055 (*ignore the adjustment for interest expenses) and decompose it into three components (a.k.a. DuPont analysis).      

 

 

 

b. Suppose that the firm's assets were 100% financed through equity (i.e., no liability). What would the difference between ROA and ROCE be?           

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a To compute the firms Return on Capital Employed ROCE for FY 2055 well use the DuPont analysis to b... blur-text-image

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