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1. Use the Balance Sheet and Income Statement information to calculate ROE in 2018 using the DuPont Identity: U.S. CORPORATION 2017 and 2018 Balance Shoots ($ In millons) Assets Labilities and Owners' Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 104 221 Accounts payable $ 232 Accounts receivable 455 688 Notes payable Inventory 553 555 Total $ 428 $ 389 Total $1,112 $1,464 Fixed assets Net plant and Long-term debt $ 408 $ 454 equipment $1,644 $1,709 Owners' equity Common stock and paid-in surplus Retained earnings 1,320 1,690 Total $1,920 $2,330 Total liabilities and Total assets $2,756 $3.173 owners' equity $2,756 $3,173 $ 266 123 196 600 640 U.S. CORPORATION 2018 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends Addition to retained earnings $1,509 750 65 $ 694 70 $ 624 131 $ 493 $123 370.

2.Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash • What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income Statement given: U.S. CORPORATION 2018 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net Income $1,509 750 65 $ 694 70 $ 624 131 $ 493 Dividends Addition to retained earnings $123 370
Income Statement Common-size Sales Cost of Goods Sold Depreciation EBIT Taxable income Interest Taxes Net Income b) ii) Prepare the 2018 (base year-2017) common-base year Balance Sheet given: Assets 2017 2018 US CORPORATION 2017 and 2018 Balance Sheets in millions Liabilities and Owners Equity 2018 2017 Current liabilities $ 221 Accounts payable $ 232 688 Notes payable 196 555 Total $ 428 $1,464 Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment $ 104 455 553 $1,112 $ 206 123 $ 389 Long term debt $ 408 $ 454 $1.644 $1.709 Owners' equilty Common stock and pald-in surplus Retained earnings Total Total liabilities and owners' equity 600 1.320 $1.920 6-40 1,690 $2,330 Total assets $2.756 $3,173 $2.756 $3,173
Assets Liabilities and Equity Common-Base Year Common-Base Year Cash A/R Inventory Net Fixed Assets A/P Notes Payable Long term debt Common Stock Total Assets Ret Earnings Total Liabilities and Equity.

3.Show your complete solution, you may type your solution Follow Given, Required, Solution - Format 1. Find the nominal interest rate, effective interest rate, and rate per compounding period given the following interest rates: a. 12% compounded semi-annually b.4% compounded quarterly c. 18% compounded monthly d. 26% compounded weekly 2. What nominal interest rate is paid if compounding is annual and a. Payments of 4,500 per year for six years will repay an original loan of $17,000? b. Annual deposits of P1,000 will result in 125,000 at the end of 10 years? 3. A five-seven loan company offers money at 1% interest per week compounded weekly. What is the effective annual interest rate? What is the nominal interest rate? (Use 52 weeks = 1 year) 4. Jay borrowed P10,000 and was able to sign a promissory note that he would pay P20,327.90 after 4 years. How much is the nominal rate of interest and the corresponding effective rate if money is compounded bi-monthly 5. Compare accumulated amounts after years 11.000 invested at the rate of 10% per year compounded: (a) annually. (b) semi-annually. Id quarterly, and (d) monthly.