2. Below is selected date for ABC Co. Use this information to answer the following questions.

Assume all assets are operating assets; all current liabilities are operating liabilities

A- Calculate return on net operation assets for 2006. B- Calculate return on equity for 2006.

3. Selected ratios from ABC Co. for year 1 and year 2 are presented below;

Financial Statement analysis

A- Calculate return on net operating assets for Year 1. B- Calculate return on common equity for year1.

Financial Statement analysis Financial Statement analysis Equity Common stock 413,783 9,208 540.901 (201,438)(201.438 772,454 $2.314.492 413,783 2. 19,208 436,752 Below is selected date for ABC Co. Use this information to answer the following questions Retained eamings Treasury stock Total stockholders equity Total liabilities and equity 2006 2005 $4,650 $4.730 668,305 Current assets Long-term assets Current liabilities Long-term debt Common equity 2,120,735 7.120 6.450 1-440 3.830 3.760 6.300 6.080 1.340 Given that the effective tax rates for Excell are 37% in year 8 and 36% in year 9, calculate Operating income Interest expense Tax expense (40%) Net income 2.140 240 760 1.140 1. Return on operating asset (RNOA) for year 9 2. Return on common cquity (ROCE) for year9 Assume all assets are operating assets; all current liabilities are operating liabilities A- Calculate return on net opcration assets for 2006. B- Calculate return on cquity for 2006. 3. Selected ratios from ABC Co. for year 1 and year 2 are presented below; Year Net operating assets common equity Net operating profit margin Income tax rate Revenues average net operating assets EBIT revenues Year 2 1.53 21% 28% 0.61 19% 47% 0.81 38% 32% A- Calculate return on net opcrating assets for Year 1. B- Calculate return on common equity for yearl