As a computer industry analyst you are interested in tracing financial health of computer industry between 2010 and 2014 and in particular tracing the impact of the financial crisis and recession on the industry's health. To answer these questions you have access to selected balance sheet and income statement data items from the Compustat. To accomplish your task you will need to know how to use Stata to import a dataset, review data, perform simple data manipulation tasks, display summary statistics, and export the final dataset. You must create and run a do-file and show your results in a log files. The instructions below contain hints as to which commands may be appropriate for each task. Be sure to consult Stata's help function as necessary. Each of ten parts below is worth 5 points. You must use one or more Stata commands to implement each of the parts below. 1. Open Stata and start a do-file. Be sure to begin a log (in text file format) and set your own working directory. 2. Import the dataset that contains a subset of annual balance sheet and income statement items ["AnnualFinancials_2010_2014_Fiscal.csv"], browse its contents, and use a command to describe the variables 3. How many observations of revenue (revt) and cash and short term investments (che) and capital expenditure (capx) variables have negative values? How many observations of revenue variable are negative when variable che is missing? Set negative values of revenue (revt) and cash and short term investments (che) and capital expenditure (capx) variables equal to missing. 4. For each firm and fiscal year generate three variables: cash_to_assets which is a ratio of cash and short term investments to total assets asset_turn which asset turnover ratio (revenue/total assets) and the capex_intensity which is a ratio of capital expenditures to revenue. For each new variable show detailed summary statistics 5. List fiscal year, company name, sic code and three ratios generated above for Apple Inc. for all years in the data. What can you say about changes in Apple's financial position or performance over time? Briefly comment. 6. Generate a dummy variable that takes on value of one if a firm belongs to Electronics and Computer industries category (SIC codes 3570, 3571, 3572, 3575, 3576, 3577, 3578 or 3579) and zero otherwise. (Note: for sic code description browse to: http://www.sec.gov/info/edgar/siccodes.htm) 7. (a) Calculate mean asset turnover ratio for Electronics and Computer category in 2011 and 2013 only. (b) Now calculate the median asset turnover ratio for each industry (sic code) within Electronics and Computer category in 2011 and in 2013 only. Do you find that differences in asset turnover ratios between industries in 2011 remain similar in 2013? Briefly comment. 8. Display a table that identifies 2012 firm-level asset turnover ratios for each industry (sic code) in Electronics and Computers category. Which industry contains a firm with the highest and lowest asset turnover ratio? 9. Be sure to save a copy of the dataset in your work directory in both Stata and Excel file formats. When saving data to an Excel file make sure that variable names will appear in the first row and data is outputted to Excel worksheet named "Compustat". 10. To finish, close the log file and save the do-file.