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Using Bookbinder Corporation’s financial statements (shown b…

Using Bookbinder Corporation’s financial statements (shown below) for 2024, answer the following questions. (20 points) Bookbinder Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)   2024   2023 Sales $16,500   $15,000 Operating Costs Excluding depreciation 14,040   12,750 Depreciation and amortization 570   540 Earnings before interest and taxes $1,890   $1,710      Less interest 180   150 Pre-tax income $1,710   $1,560     Taxes (40%) 684   624 Net income available to common stockholders $1,026   $936 Common dividends $330   $300  Bookbinder Corporation: Balance Sheets as of December 31 (Millions of Dollars)   2024   2023 Assets       Cash $825   $750 Short-term investments 165   150 Accounts receivable 4,125   3,750 Inventories 2,475   2,250   Total current assets $7,590   $6,900   Net plant and equipment 5,775   5,250 Total assets $13,365   $12,150       Liabilities and Equity       Accounts payable $1,650   $1,500 Accruals 825   750 Notes payable 576   300 Total current liabilities $3,051   2,550 Long-term debt 1,650   1,500 Total liabilities $4,701   $4,050 Common stock 6,468   6,600 Retained earnings 2,196   1,500 Total common equity $8,664   $8,100   Total liabilities and equity $13,365   12,150 a. What is the firm’s current ratio? What is the firm’s quick ratio? b. What is the firm’s total assets turnover? c, What it the firm’s debt-to-assets ratio? d. What is the firm’s ROA? What is the firm’s ROE? e. What is the firm’s net profit margin? f. Construct the extended Du Pont equation for Bookbinder Corporation (need to find all three ratios which explain the change of ROE). Note: Please use the financial statements for 2024 to answer the questions above.  

Part II. Solve the following problems. (75 points) (If you l…

Part II. Solve the following problems. (75 points) (If you look for partial credit, please show your work) Bookbinder Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)   2024   2023 Sales $16,500   $15,000 Operating Costs Excluding depreciation 14,040   12,750 Depreciation and amortization 570   540 Earnings before interest and taxes $1,890   $1,710      Less interest 180   150 Pre-tax income $1,710   $1,560     Taxes (40%) 684   624 Net income available to common stockholders $1,026   $936 Common dividends $330   $300  Bookbinder Corporation: Balance Sheets as of December 31 (Millions of Dollars)   2024   2023 Assets       Cash $825   $750 Short-term investments 165   150 Accounts receivable 4,125   3,750 Inventories 2,475   2,250   Total current assets $7,590   $6,900   Net plant and equipment 5,775   5,250 Total assets $13,365   $12,150         Liabilities and Equity       Accounts payable $1,650   $1,500 Accruals 825   750 Notes payable 576   300 Total current liabilities $3,051   2,550 Long-term debt 1,650   1,500 Total liabilities $4,701   $4,050 Common stock 6,468   6,600 Retained earnings 2,196   1,500 Total common equity $8,664   $8,100   Total liabilities and equity $13,365   12,150   1), Using Bookbinder Corporation’s financial statements (shown below), answer the following questions. (27 Points) a. What is the net operating profit after taxes (NOPAT) for 2024？  b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2024? e. What is the ROIC for 2024? f. How much of the FCF did Bookbinder use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.  Also, the total FCF in part f should be equal to the FCF you calculate from part d)