As part of your analysis, you are required to investigate Micron Industries’ cash flows and selected ratios. Required: Using the financial statement provided on page 1: (a) Compute the following ratios for Micron Industries for 2018 and 2019: i. Return on Equity using Du Pont Identity  ii. Earnings Per Share (EPS)  iii. Price/Earning (P/E) Ratio

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
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As part of your analysis, you are required to investigate Micron Industries’ cash flows and selected
ratios.
Required: Using the financial statement provided on page 1:


(a) Compute the following ratios for Micron Industries for 2018 and 2019:
i. Return on Equity using Du Pont Identity 
ii. Earnings Per Share (EPS) 
iii. Price/Earning (P/E) Ratio 
iv. Book Value Per Share 
v. Market-to-Book Ratio


(b) Calculate the following for 2019:
i. Operating Cash Flow
ii. Net Capital Spending 
iii. Change in Net Working Capital 
iv. Cash Flow from Assets 
v. Cash Flow to Creditors 
vi. Cash Flow to Stockholders

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