CHAPTER 4: Financial Statement Analysis Tools Problems 1. Copy the Mike Owjai Manufacturing financial statements from Problem in Chapter 2 into a new workbook a. Set up a ratio worksheet similar to the one in Exhibit 4-6, page 131 b. Identify at least two areas of potential concern using the ratios. c. In 2014 Mike Owjai Manufacturing's ROE increased. Explain, in and calculate all of the ratios for Mike Owjai Manufacturing. Identify at least two areas that have shown improvement. words, why this increase occurred using the DuPont method from equation (4-29). Now use the extended DuPont method from (4-33). d. Mike Owjai Manufacturing 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 1 1%. Using Altman's model for privately held firms, calculate the Z-score for Mike Owjai Manufacturing. Does t appear that the firm is in imminent danger of bankruptcy? e. CHAPTER 4: Financial Statement Analysis Tools Problems 1. Copy the Mike Owjai Manufacturing financial statements from Problem in Chapter 2 into a new workbook a. Set up a ratio worksheet similar to the one in Exhibit 4-6, page 131 b. Identify at least two areas of potential concern using the ratios. c. In 2014 Mike Owjai Manufacturing's ROE increased. Explain, in and calculate all of the ratios for Mike Owjai Manufacturing. Identify at least two areas that have shown improvement. words, why this increase occurred using the DuPont method from equation (4-29). Now use the extended DuPont method from (4-33). d. Mike Owjai Manufacturing 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 1 1%. Using Altman's model for privately held firms, calculate the Z-score for Mike Owjai Manufacturing. Does t appear that the firm is in imminent danger of bankruptcy? e