Problem_Set__2_Checkpoints_(Post-Check)

Problem_Set__2_Checkpoints_(Post-Check) - .025 =.0078 X...

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BusM 401 Problem Set #2 Checkpoints Evaluating Financial Performance Note: These checkpoints are short answers intended to help you check your work as you go along. They are not full solutions, which will be posted on Blackboard after the problem set is turned in. Remember that to get full credit for problem sets you must show all your work, and the answers listed here are usually not sufficient responses to the questions. 1. Do Higgins, Chapter 1, #6. a. R&E Supplies, Inc. Sources and Uses Statement 2005 - 2008 ($000). Total sources should equal $3,054. (Uses should be the same amount.) b. Insights: 2. a. In 2006, Braintree Corporation had net income of $409 million on sales of $52,378 million. Braintree’s assets total $16,392 million. Show how Braintree’s ROA can be expressed as function of profit margin and asset turnover.
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Unformatted text preview: .025 = .0078 X 3.20 b. If Braintree has equity of $8,196 million, what is Braintrees ROE? .05 3. Do Higgins, Chapter 2, #5. (Answer provided in back of book.) 4. Do Higgins, Chapter 2, #12, but find data as of fiscal year-end 2007 . Also, look up Delta (DAL) instead of AMR, and look up Alcoa instead of Alcan. You dont need the Market Insight website, necessarily. You can find the information from financial statements at an Internet finance site such as Yahoo. (Note that if the balance sheet only says Property, Plant, & Equipment, you can assume that is Net PPE.) Delta Oracle Alcoa Yahoo Fiscal year-end 5/07 Sales (millions) 17,996 Property, plant, & equipment (millions) 1,603 Sales/PPE 11.23 2...
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