Using the data for Adobe Systems Inc. (Nasdaq: ADBE), presented below:

a. Calculate the ratio of each years' data to the previous year for each of the above items for Adobe. For example, for the year 2013, the ratio for sales is $4,055/$4,404 = 0.92075.
b. From your calculations in part a, calculate each year's rate of growth. Using the example in part a, the ratio is 0.92075, so the percentage growth in sales for 2013 is 0.92075 - 1 or -7.925%.
c. Calculate the average growth rate (using the AVERAGE function) of each of the above items using the results you calculated in part b. These averages are arithmetic averages.
d. Use the GEOMEAN function to estimate the compound annual average growth rate (CAGR) for each of the above items using the results that you calculated in part a. Be sure to subtract 1 from the result to arrive at a percent change. These are geometric averages.
e. Compare the results from part c to those for part d for each item. Is it true that the arithmetic average growth rate is always greater than or equal to the geometric average (CAGR)?
f. Contrast the results for the geometric averages to those for the arithmetic average for the variables listed below. What do you observe about the differences in the two growth estimates for Interest Expense and Net Income? What do you observe about the differences in the two estimates for Total Liabilities and Retained Earnings?
1. Sales
2. EBIT
3. Total Assets
4. Accounts Payable
5. Retained Earnings

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Fiscal Year 2013 201220112010 2009 Sales S4,055 S4,404 S4,216 S3.800 S2,946 EBIT 423 1,180 1,099 993691 Interest Expense 68 67 67 57 Total Net Income 290833833775387 0.58 1.681.671.49 0.74 10,3809,975 8,991 8,141 7,28.2 59 3,6563.3093.2082,9492,392 6,929 7,003 6,529 5,981 5,300 Net Cash from Operating Activities 1,1521,500 1,5431,113 1,118 963 1,2291,333 943 998 Basic EPS from Total Operations Total Assets Ac 87 counts Payable Total Liabilities Retained Earnings 62 50 52 Free Cash Flow