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Part 1: Ratio Analysis: Perform the following analysis: Part 2: DuPont Analysis: Perform the following analysis: (1) Create a table that reflects both 2015 and 2016 operating ratios for Dayton, a. Use the information below from BioTech's annual financial statements to calculate a DuPont analysis of ROE for each of the years. Inc., segmented into (a) liquidity, (b) activity, (c) debt, (d) profitability, and b. What do you observe about BioTech's trends? Is this firm more likely (e) market. Assume that the current market price for the stock is $90. to be in an early stage of its life cycle or later? Explain. (2) Compare the 2015 ratios to the 2016 ratios. Indicate whether the results "Were better than the prior year or Worse than the prior year." Answer: Show your Answer Below the statements provided. BiotTech data: Annual Income Statements (Values in Millions) BioTech Inc. ($ in millions) For the year ended 2013 2014 2015 2016 2017 December 31, 2015 December 31, 2016 Sales Growth %: 13.4% 11.4% 11.1% 10.9% Sales $187,510 $178,909 Sales 655.10 743.15 827.52 919.45 1,019.43 Cost of goods sold 111,631 109,701 Net income 61.73 79.21 95.05 144.41 164.25 Selling, general, and administrative expenses 12,900 12,356 Total assets 765.15 879.92 1,011.91 1,163.72 1,338.25 Other tax expense 33,377 33,572 Equity 564.24 621.55 695.43 723.18 777.82 Depreciation and amortization 7,944 12,103 Dividends 11.10 15.70 20.00 35.10 48.70 Other income (add to EBIT to arrive at EBT) 3,323 3,147 Interest expense 293 398 Income tax rate (average) 37.95% 35.32% Part 2: YOUR ANSWER: Dividends paid per share $0.91 $1.13 Basic EPS from total operations $2.25 $1.34 BioTech Inc. ($ in millions) 2013 2014 2015 2016 2017 Trend Annual Balance Sheets (Values in Millions) For the year ended December 31, 2015 December 31, 2016 Cash $6,547 $7,229 Receivables 19,549 21,163 Inventories 7,904 8,068 Other current assets 1,681 1,831 Propert, plant, and equipment, gross 187,519 204,960 Accumulated depreciation and depletion 97,917 110,020 Observations? Other noncurrent assets 17,891 19,413 Accounts payable 22,862 13,792 Short-term debt payable 3,703 4,093 Other current liabilities 3,549 15,290 Long-term debt payable 7,099 6,655 Deferred income taxes 16,359 16,484 Other noncurrent liabilities 16,441 21,733 Retained earnings 73,161 74,597 Total common shares outstanding 6.8 billion 6.7 billion Likely Stage in Life-Cycle? (ie new or old firm?) & explanation. Part 1: YOUR ANSWER: Ratio Categories: December 31, 2015 December 31, 2016 Comparison Use this type of format and complete for each type of Liquidity ratio.

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