Formulating Financial Statements from Raw Data Following is selected financial information from Cisco Systems, Inc., for its fiscal year ended July 27, 2013 ($ millions).

Cash, ending year	$ 7,925
Cash from operating activities	12,894
Sales	48,607
Stockholders' equity	59,128
Cost of goods sold	19,167
Cash from financing activities	(3,000)
Total liabilities	42,063
Total expense (other than cost of goods sold)	19,457
Noncash assets	93,266
Cash from investing activities	(11,768)
Net income	9,983
Cash, beginning year	9,799

(a) Prepare the income statement, the balance sheet, and the statement of cash flows for Cisco Systems for the fiscal year ended July 27, 2013. Hint: Enter negative numbers only in answers for the statement of cash flows (if applicable).

Cisco Systems, Inc Income Statement ($ millions) AnswerJuly 27, 2013For Year Ended July 27, 2013
Sales	$Answer
AnswerCost of goods soldExpensesCash, ending year	Answer
Gross profit	Answer
AnswerExpensesCost of goods soldCash, ending year	Answer
Net income	$Answer

Cisco Systems, Inc Balance Sheet ($ millions) AnswerJuly 27, 2013For Year Ended July 27, 2013
Assets			Liabilities
Cash	$Answer		Total liabilities	$Answer
AnswerNet incomeStockholders' equityNoncash assetsCash, beginning year	Answer		AnswerCash, beginning yearStockholders' equityNet incomeNoncash assets	Answer
Total assets	$Answer		Total liabilities and equity	$Answer

Cisco Systems, Inc Statement of Cash Flows ($ millions) AnswerJuly 27, 2013For Year Ended July 27, 2013
Cash from operating activities	$Answer
AnswerCash from investing activitiesCash, beginning yearNet incomeNoncash assets	Answer
Cash from financing activities	Answer
Net change in cash	Answer
AnswerNet incomeCash used in investing activitiesCash, beginning yearNoncash assets	Answer
Cash, ending year	$Answer

(b) Do the negative amounts for cash from investing activities and cash from financing activities concern us? Explain.

A negative amount for cash from financing activities implies that the company is unable to pay its debts as they come due and should be interpreted negatively.

A negative amount for cash from financing activities is the result of additional borrowings. Because the additional funds are invested in earnings-generating assets, this should be viewed positively.

A negative amount for cash from financing activities implies that the market value of the company's long-term debt has declined and this change should be viewed negatively.

A negative amount for cash from financing activities reflects the reduction of long-term debt, which is a positive sign of the companys ability to retire debt obligations.

(c) Using the statements prepared for part a. compute the following ratios (for this part only, use the year-end balance instead of the average for assets and stockholders' equity): (i) Profit margin (Round your answer to two decimal places.) Answer% (ii) Asset turnover (Round your answer to two decimal places.) Answer (iii) Return on assets (Round your answer to two decimal places.) Answer% (iv) Return on equity (Round your answer to two decimal places.) Answer%