Redbird, Inc. 2016 Income Statement (In Millions of US Dollars)

     Net sales                                           $9,625

     Less: Cost of goods sold                    5,225

     Less: Depreciation                           1,890

     Earnings before interest and taxes   $2,510

     Less: Interest paid                                 850

     Taxable Income                              $1,660

     Less: Taxes                                       581

     Net Income                                 $1,079

     Additions to retained earnings      $670

     Dividends paid                                    $400

     Redbird, Inc. Balance Sheets (12/31/15 and 12/31/16) (In Millions of US Dollars)

                                 2015          2016                                                 2015        2016

     Cash                         $1,455        $260          Accounts Payable        $1,150         $2,863

     Accounts Rec.            2,460         3,975          Accruals              2,600             1,628

     Inventory                    1,405         1,885          Current Liabilities     $3,750         $4,491

     Current Assets      $5,320       $5,120          Long-term Debt            7,000             7,600

     Net Fixed Assets    $19,300     $21,720      Common Stock           5,500             5,700

                                                                           Retained Earnings           8,370             9,049

    Total Assets            $24,620     $26,840         Total Debt & Equity $24,620         $26,840

What is the firm's net capital spending for 2016?

A. $19,830

B. $4,310

C. $2,420

D. $530

What is the firm's change in net working capital for 2016?

A. $366

B. $719

C. –$200

D. –$941

What is the firm's cash flow to stockholders for 2016?

A. $ 0

B. $200

C. $400

D. $600

What is the firm's cash flow from assets for 2016?

A. $3,819

B. $450

C. -$291

D. -$1,432

Calculate the firm’s cash ratio at the end of 2016.

A. 0.051

B. 0.058

C. 0.943

D. 0.988

Calculate the firm’s 2016 days’ costs in payables based on the payables balance at the end of 2016. Use a 365-day year.

A. 90 days

B. 109 days

C. 200 days

D. 278 days

Calculate the firm’s 2016 capital intensity ratio.

A. 6.028

B. 5.904

C. 3.719

D. 2.789

Which of the following shows the correct calculation of the firm’s 2013 DuPont Identity?

A. ($2,510/$14,749) x ($14,749/$26,840) x ($26,840/$5,700)

B. ($1,079/$9,625) x ($9,625/$12,091) x ($12,091/$7,600)

C. ($1,079/$9,625) x ($9,625/$26,840) x ($26,840/$14,749)

D. ($1,079/$2,510) x ($2,510/$7,600) x ($7,600/$9,049)

The firm’s 2016 DPS (dividends per share) is $4.00. What is the firm’s 2016 EPS (earnings per share)?

A. Can’t be determined.

B. 0.371 times

C. 67.9%

D. $10.79

At the end of 2016 the firm’s stock price is $150 per share. Calculate the firm’s 2016 Market-to-Book Ratio.

A. 1.017

B. 1.658

C. 2.632

D. 13.902