Using the financial statements and additional notes of Walgreens found in the PDF file, answer the following questions. Walgreen's fiscal period ends on August 31. 1. Calculate the inventory turnover for the company, for the year ended August 31, 2019, under the FIFO. Round answer to the nearest hundredth. (ex. 12.456 -> 12.45; 12.452 -> 12.45) (6 points) What was the dollar value of the depreciation and amortization expense recorded by the firm in 2017? Answer in millions (ex. $3 million -> 3). No need to show your work. (2 points) What was the amount of the firm's working capital in 2018? Answer in millions (ex. $3 million -> 3). No need to show your work. (2 points) How much of the cash dividends declared prior to 2019 were paid by the end of 2019? In other words, how much of cash dividend paid in 2019 was not declared in 2019? Answer in millions (ex. $3 million -> 3). (3 points) What was the firm's cash coverage ratio in 2019? Round answer to the nearest hundredth. (ex.12.456 -> 12.45; 12.452 -> 12.45) No need to show your work. (3 points) What was the number of shares used to calculate the (basic) earnings-per-share for 2019? Ignore anything that says "net (loss) earnings attributable to non-controlling interests". Round answer to the nearest hundredth. (ex.12.456 -> 12.45; 12.452 -> 12.45) No need to show your work. (3 points) What was the firm's quality of income ratio in 2019? Ignore anything that says "net (loss) earnings attributable to non-controlling interests". Round answer to the nearest hundredth. (ex.12.456 -> 12.45; 12.452 -> 12.45) No need to show your work. (3 points) What was the firm's fixed asset turnover ratio in 2019? Calculate the ratio and provide the interpretation. Round answer to the nearest hundredth. (ex. 12.456 -> 12.45; 12.452 -> 12.45) (4 points) Assets Current assets: Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Non-current assets: Property, plant and equipment, net Goodwill Intangible assets, net Equity method investments (see note 5) Other non-current assets Total non-current assets Total assets Liabilities and equity Current liabilities: Short-term debt Trade accounts payable (see note 18) Accrued expenses and other liabilities Income taxes Total current liabilities Non-current liabilities: Long-term debt Deferred income taxes Other non-current liabilities Total non-current liabilities WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At August 31, 2019 and 2018 (in millions, except shares and per share amounts) Commitments and contingencies (see note 10) Equity: Preferred stock $.01 par value; authorized 32 million shares, none issued Common stock $.01 par value; authorized 3.2 billion shares; issued 1,172,513,618 at August 31, 2019 and 2018 Paid-in capital Retained earnings Accumulated other comprehensive loss 2019 2018 s 1,023 $ 785 7,226 6,573 9,333 9,565 1,118 923 18,700 17,846 13,478 13,911 16,560 16,914 10,876 11,783 6,851 6,610 1,133 1,060 48,899 50,278 67,598 68,124 S 5,738 $ 1,966 14,341 13,566 5,474 5,862 216 273 25,769 21,667 11,098 12,431 1,785 1,815 4,795 5,522 17,678 19,768 12 12 10,639 10,493 35,815 33,551 (3,897) (3,002) Treasury stock, at cost; 277,126,116 shares at August 31, 2019 and 220,380,200 shares at August 31, 2018 Total Walgreens Boots Alliance, Inc. shareholders' equity (19,057) 23,512 (15,047) 26,007 Noncontrolling interests 641 682 Total equity 24,152 26,689 Total liabilities and equity $ 67,598 $ 68,124 WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY For the years ended August 31, 2019, 2018 and 2017 (in millions, except shares) Equity attributable to Walgreens Boots Alliance, Inc. Employee Accumulated Common stock shares Common stock amount Treasury stock Paid-in amount capital stock loan other comprehensive Retained Noncontrolling receivable income (loss) earnings interests Total equity August 31, 2016 Net earnings Other comprehensive income (loss), net of tax Dividends declared and distributions 1,082,986,591 S 12 S (4,934) $ 10,111 $ (1) S (2,992) $ 27,684 S 401 S 30,281 4,078 23 4,101 Treasury stock purchases (64,589,677) Employee stock purchase and option plans 5,452,156 (5,220) 183 Stock-based compensation Noncontrolling interests acquired and arising on business combinations 103 August 31, 2017 1,023,849,070 $ 12 $ (9,971) $ 10,339 S Net earnings Other comprehensive income (loss), net of tax Dividends declared and distributions Treasury stock purchases Employee stock purchase and option plans (76,069,557) 4,353,905 (5,228) 152 Stock-based compensation Noncontrolling interests contribution and other August 31, 2018 952,133,418 $ 12 $ (15,047) $ 10,493 S Net earnings Other comprehensive income (loss), net of tax Dividends declared and distributions Treasury stock purchases Employee stock purchase and option plans Stock-based compensation Adoption of new accounting standards Noncontrolling interests contribution and other August 31, 2019 (61,723,456) (4,160) 4,977,540 150 895,387,502 $ 12 $ (19,057) $ 10,639 S || " (59) (36) (95) (1,625) (98) (1,723) (5,220) 218 91 518 621 (3,051) $ 30,137 S 5,024 808 $ 28.274 7 5,031 49 1 50 (1,610) (138) (1,748) (5,228) 174 130 2 4 6 (3,002) S 33,551 $ 3,982 682 $ 26,689 (20) 3,962 (896) (13) (909) (1,629) (3) (1,632) (4,160) 174 119 (88) (88) (1) (5) (3) $ (3,897) S 35,815 $ 641 $ 24,152 WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS For the years ended August 31, 2019, 2018 and 2017 (in millions, except per share amounts) Sales Cost of sales Gross profit Selling, general and administrative expenses Equity earnings in AmerisourceBergen Operating income 2019 2018 2017 136,866 S 131,537 $ 118,214 106,790 100,745 89,052 30,076 30,792 29,162 25,242 24,694 23,813 164 191 135 4,998 6,289 5,484 233 Other income Earnings before interest and income tax provision 5,231 Interest expense, net Earnings before income tax provision Income tax provision Post tax earnings from other equity method investments Net earnings Net (loss) earnings attributable to noncontrolling interests Net earnings attributable to Walgreens Boots Alliance, Inc. Net earnings per common share: Basic Diluted 302 6,591 62 5,546 704 616 4,527 5,975 693 4,853 588 998 760 23 54 8 3,962 5,031 4,101 (20) 7 23 3,982 S 5,024 $ 4,078 $ 4.32 S 5.07 S 3.80 $ 4.31 S 5.05 $ 3.78 WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended August 31, 2019, 2018 and 2017 (in millions) Cash flows from operating activities: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Gain on previously held equity interest Deferred income taxes Stock compensation expense Equity earnings from equity method investments Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Other current assets Trade accounts payable Accrued expenses and other liabilities Income taxes Other non-current assets and liabilities Net cash provided by operating activities Cash flows from investing activities: 2019 2018 2017 3,962 $ 5,031 $ 4,101 2,038 1,770 1,654 (337) 100 (322) (434) 119 130 91 (187) (244) (143) 302 296 364 (789) (391) (153) 141 331 98 (112) (22) 954 1,352 1,684 (374) 287 (128) (406) 694 44 (154) (311) 77 5,594 8,263 7,255 Additions to property, plant and equipment (1,702) (1,367) (1,351) Proceeds from sale leaseback transactions 3 444 Proceeds from sale of other assets 117 655 59 Business, investment and asset acquisitions, net of cash acquired Other (741) (4,793) (88) 16 93 Net cash used for investing activities (2,307) (5,501) (843) Cash flows from financing activities: Net change in short-term debt with maturities of 3 months or less 536 586 33 Proceeds from debt 12,433 5,900 Payments of debt (10,461) (4,890) (6,196) Stock purchases (4,160) (5,228) (5,220) Proceeds related to employee stock plans 174 174 217 Cash dividends paid (1,643) (1,739) (1,723) Other 75 (98) Net cash used for financing activities (3,047) (5,295) (45) (12,934) Effect of exchange rate changes on cash, cash equivalents and restricted cash (9) 11 26 Changes in cash, cash equivalents and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash 232 Cash, cash equivalents and restricted cash at beginning of period 975 (2,522) 3,496 (6,496) 9,992 Cash, cash equivalents and restricted cash at end of period 1,207 $ 975 $ 3,496