PLEASE USE THE VALUES GIVEN

1. Based on the financial statements of Macys Inc., calculate the following ratio for 2019 only unless otherwise stated.

1. Profitability ratios: return on equity; return on assets; profit margin; gross profit margin; and general overhead ratio;
2. Solvency ratios: Debt to equity; leverage multiplier; quick ratio; current ratio; times interest earned ratio;
3. Activity ratios: Asset turnover; working capital turnover; inventory turnover; account receivable collection period; account payable collection period;
4. Using the Dupont method, calculate the 5 components of Macys Companys ROE for both 2017 and 2019.
5. Evaluate the companys bankruptcy risk using Z-scoreThe market value of Macys equity is $4,940 million on 1/31/2020 and $1,528 million on 4/22/2020.

2019 Balance Sheer (In Millions of US ) 2017 Assets Cash $ 1,455 $ Accounts receivable 811 685 937 Income Statement (In Millions of US) 2017 2019 Sales $ 24,837 $ 25.331 Cost of goods sold 15,152 15.171 Depreciation expense 257 271 Selling & General Administrative expense 8.131 8.998 Total non-operating income expense 276 (230) Interest expense 323 204 Income before taxes $ 1.250 $ 457 Income tax expense (29) 164 Net Income $ 1.279 $ 293 Inventory Total current assets Property, plant, and equipment Accumulated depreciation Other long-term assets Total long-term assets Total assets 5.078 5.088 7,344 $ 6.710 11.282 13.693 (4.610) (4,392) 5.265 5061 11.937 14,362 19,281 $ 21,072 $ $ $ Liabilities and Equity Accrued liabilities Accounts payable Other current liabilities Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity $ 662 $ 590 2.325 $ 2.659 2.088 2.501 5.075 $ 5.750 8.645 9.045 3 3 5,558 6.274 19.281 $ 21,072 $