Cinemark USA Inc. is one of the largest exhibitors of motion pictures in the United States. The condensed liabilities and stockholders’ equity portion of Cinemark’s balance sheet for the end of a recent year is as follows (in millions):

Total current liabilities ..............$ 128.9

Long-term debt ...................687.1

Other items .....................16.7

Total liabilities .................$ 832.7

Stockholders’ equity (deficit):

Common stock ..................$ 49.5

Additional paid-in capital .............51.1

Accumulated other comprehensive loss ........(77.1)

Retained earnings .................169.6

Treasury stock .................(24.2)

Total stockholders’ equity .............$ 168.9

Total liabilities and stockholders’ equity ......$1,001.6

Additional information:

Total assets, beginning of year: $960.7

Total stockholders’ equity, beginning of year: $76.8

Cinemark’s income statement for a recent year-end was as follows:

Revenues:

Admissions ..................$ 647.0

Concession ..................321.6

Other .......................55.6

Total revenues ..................$1,024.2

Costs and expenses:

Cost of operations:

Film rentals and advertising ............$ 348.8

Concession supplies .................53.8

Salaries and wages ..................103.1

Facility lease expense .............$ 126.6

Utilities and other ................113.0

Total cost of operations ............$ 745.30

General and administrative expenses ..........51.5

Depreciation and amortization ...........67.1

Other expenses ....................38.5

Total costs and expenses ............$ 902.4

Operating income .................$ 121.8

Other income (expense)

Interest expense ..................$ 42.7

Other expense ....................7.6

Income before income taxes ...........$ 71.5

Income taxes ...................27.0

Net income ...................$ 44.5

1. Determine the following:

a. DuPont formula

b. Leverage formula

c. Total operating profit as a percent of sales

d. Concession gross profit as a percent of concession sales

e. Number of times interest charges earned

2. Evaluate Cinemark’s financial performance, using the calculations in (1).