Using Delta's managerial balance sheets and income statements provided below,

• find- ROIC, ROE, leverage, interest rate after tax, and spread for both year 1 and year 2?
• Did Delta operations (worsen or improve) in Year 2 as compared to Year 1?
• All else equal, financing changes led to (lower or higher)ROE in Year 2?
• Out of the Year 2 ROE, what part comes from financing decisions?
• What would ROE been in Year 2 if leverage was the same as it was in Year 1?
• What would have ROE been inyear 2 if operational efficiency was the same as it was in year 1?

Delta Question Set Delta Managerial Income Statement Year 2 Year 1 Sales 39,639 40,704 Cost of Sales 15,940 17,096 SG & A 16,675 15,970 EBIT 7,024 7,638 Taxes 2,395 2,807 NOPAT 4,629 4,831 Interest A. Taxes 256 304 Net Income 4,373 4,527 Delta Managerial Balance Sheet Year 2 Year 1 Op. Working Capital -5,969 -4,326 Net Fixed Assets 43,810 44,078 Net Assets / Cap. Emp. 37,841 39,752 All Debt 25,554 28,902 Equity 12,287 10,850 Invested Capital 37,841 39,752