101 TO 101 Unctions Introduced in this Chapter 1. Copy the Big Rock Candy Mountain Mining financial statements from Problem 1 a. Set up a ratio worksheet similar to the one in Exhibit 3-6, page 99, and calcu- b. Identify areas of concern, if any, using the ratios. Identify areas that have Purpose Function Liquidity Ratios Return a value dependent on test LET VAR Returns true if all arguments true Area L.) Returns true if one argument is true OLI L.) PROBLEMS in Chapter 2 into a new workbook. late all of the ratios for the firm. shown improvement, if any. c. In 2020 the ROE increased. Explain, in words, why this increase occurred using the DuPont method from equation (3-29). Now use the extended DuPont method from equation (3-33). Big Rock Candy Mountain Mining has shown an accounting profit in each of the past two years. Calculate the economic profit for these years and compare it to net income. The WACC is 9%. Using Altman's model for privately held firms, calculate the Z-score for Big Rock Candy Mountain Mining. Does it appear that the firm is in imminent danger of bankruptcy? A computer problem at Mike Owjai Finance has resulted in incomplete financial statements. Management of the company has asked you to see if you can fill in the missing data. 101 TO 101 Unctions Introduced in this Chapter 1. Copy the Big Rock Candy Mountain Mining financial statements from Problem 1 a. Set up a ratio worksheet similar to the one in Exhibit 3-6, page 99, and calcu- b. Identify areas of concern, if any, using the ratios. Identify areas that have Purpose Function Liquidity Ratios Return a value dependent on test LET VAR Returns true if all arguments true Area L.) Returns true if one argument is true OLI L.) PROBLEMS in Chapter 2 into a new workbook. late all of the ratios for the firm. shown improvement, if any. c. In 2020 the ROE increased. Explain, in words, why this increase occurred using the DuPont method from equation (3-29). Now use the extended DuPont method from equation (3-33). Big Rock Candy Mountain Mining has shown an accounting profit in each of the past two years. Calculate the economic profit for these years and compare it to net income. The WACC is 9%. Using Altman's model for privately held firms, calculate the Z-score for Big Rock Candy Mountain Mining. Does it appear that the firm is in imminent danger of bankruptcy? A computer problem at Mike Owjai Finance has resulted in incomplete financial statements. Management of the company has asked you to see if you can fill in the missing data