This problem set uses American Airlines for ALL questions. To start, go to its investor relations page and get its latest annual report (10-K). Make sure to use the last 3 full years! All your responses will be in the YELLOW areas only! 1. Using the firm's financials: a. Fill the income statement (in million S ). Expenses without their own line should be grouped under "All other expenses". The net income lines must tie using formulas b. Create the common size income statement (as a % of operating revenues for that year) C. Show year-on-year (YoY, in %) growth d. What happened to the profit margins? e. What are the actual tax rates? EPS? 2. Using the operating stats, what is the YoY growth rate for: a. Yield? b . Operating expense per available seat mile (CASM)? C . Revenue passenger miles (RPMs)? d. Fuel price (S/gallon)? e. What factors, other than the pandemic, are affecting margins the most? 3. Using the firm's balance sheets, show: a. Balance sheets as shown (in million $); show only net property & equipment lines. b . Common size balance sheets. C . Are there any outliers in the balance sheets that you think merit mentioning? d. For these years, what is the net working capital position? Current ratio? Quick ratio? Days receivable? Return on assets (ROA)? Return on equity (ROE)? What is the latest p/e ratio? (use Yahoo Finance) 4. Using the Statement of Cash Flows, which items stand out to you and why? 5. Go to the carrier section in the Bureau of Transportation Statistics of the U.S. DOT: a. What are the top three markets by share? b. What happened to passenger yields? C. What happened to costs per ASM? d. What do you think this means for the bottom line? e. What are the top three city pairs?in MS in % YoY Growth 2019 2020 2021 2019 2020 2021 2020 2021 Total Operating Revenues Answer part d below: Operating Expenses: Aircraft fuel and related taxes Salaries, wages and benefits Landing fees and other rents Depreciation and amortization Aircraft rent All other expenses Total Operating Expenses Operating Income Total other income (expense) (Loss)Income before taxes Income tax/(benefit) expense Net (Loss) Income Actual tax rate EPSAnswer part e below: 2020 2021 YoY growth rate Average yield Expense per available seat mile (CASM) Revenue passenger miles (millions) Average fuel cost per gallonin MS in % in MS in % 2020 2021 2020 2021 2020 2021 2020 2021 Cash, equivalents and securities Air traffic liability Accounts receivable, net Accounts payable Inventories, net Accruals Prepaids and other Other current liabilities Total Current Assets Total Current Liabilities Property & Equipment, net LTD and lease obligations Operating lease assets Long term operating leases Other assets Deferred taxes and other liabilities Total Assets Stockholder's equity Total Liab, and equity Working capital Answer part c in the box below Current ratio Quick ratio Days receivable ROA ROE ple ratio todayA B C D E