Prob. 1 in M$ in % YoY Growth 201720182019 201720182019 20182019 Operating Revenues Answer part d in box below: Operating Expenses: Salaries and related costs Aircraft fuel Regional capacity...

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Prob. 1 in M$in %YoY Growth 20172018201920172018201920182019 Operating RevenuesAnswer part d in box below: Operating Expenses: Salaries and related costs Aircraft fuel Regional capacity purchase Landing fees Depreciation/amortization Other operating expenses Total Operating Expenses Operating Income Other income/(expense) Income before taxes Income tax expense Net Income Actual tax rate Prob. 2 CentsYoY growth rate 20172018201920182019 Average yield per revenue passenger mile Cost per available seat mile Revenue passenger miles (millions) Average fuel cost per gallonAnswer part e in the box below: Prob. 3 in M$in %in M$in % 20182019201820192018201920182019 Cash and short-term investmentsAdvance ticket sales ReceivablesAccounts payable Parts and supplies inventoryFrequent flyer deferred revenue Prepaid expensesAccruals Total Current AssetsCurrent maturities of borrowings Operating Property & Equipment Other Accumulated depreciationTotal Current Liabilities Net PP&ELTD and lease obligations Goodwill and intangiblesPension and post-retirement obligations Other assetsFrequent flyer deferred revenue Total AssetsOther long term liabilities Stockholder's equity Working capitalTotal Liab. and equity Current ratioAnswer part c in the box below Quick ratio Total debt ratio ROA ROE p/e ratio today Prob. 4 Prob. 5 A B C D E v. Nov 2020 No content - Intentionally left blank November 2020 | MGMT 332 | College of Business | worldwide.erau.edu All rights are reserved. The material contained herein is the copyright property of Embry-Riddle Aeronautical University, Daytona Beach, Florida, 32114. No part of this material may be reproduced, stored in a retrieval system or transmitted in any form, electronic, mechanical, photocopying, recording or otherwise without the prior written consent of the University. MGMT 332 Corporate Finance I Module 1: Introductions, Financial Statements, and Ratios Problem Set 1 – Financial Statements and Ratios Directions: Go to the investor relations page of United Airlines to get its 2019 annual report. 1. Using the firm's selected financial data: a. Make a table showing the income statement (in M$) b. Use the table created to create a common size income statement (% of operating revenues) c. Show year-on-year (YoY) growth d. What happened to the profit margins? e. What are the actual tax rates? 2. Using the operating stats, what is the YoY growth rate for: a. Yield per passenger mile? b. Operating expense per available seat mile (ASM)? c. Revenue passenger miles? d. Average fuel cost per gallon? e. Considering the above, what factors do you think are affecting margins the most? Be specific. 3. Using the firm's balance sheets, show: a. Balance sheets as shown (in M$); show only the net property and 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? Total debt ratio? Return on assets (ROA)? Return on equity (ROE)? What is the p/e ratio for 2018? 4. Using the Statement of Cash Flows, which operating activity items stand out to you and why? Page 2 of 2 5. Go to the Bureau of Transportation Statistics (United States Department of Transportation). Select United and answer the following questions: 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? Module 1: Introductions, Financial Statements, and Ratios