Exhibit 14 -Refer to Exhibit 14

question 12

Short Answer

Exhibit 14.9
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted) $\begin{array}{lr}\text { Sales } & 5,450 \\\text { Cost of Goods Sold } & 3,250 \\\text { Gross Profit } & 2,200 \\\text { Depreciation } & 820 \\\text { Operating Expenses } & 470 \\\text { Administration Exp. } & 115 \\\text { Operating Profit } 795 & \\\text { Interest Expense } & 88 \\\text { Profit Before Taxes } & 707 \\\text { Taxes } & 247 \\\text { Net Income } & 460 \\\text { Dividends } & 250\end{array}$

$\begin{array} {} \text {Assets }& \text { Liabilities}\\\begin{array}{lc}\text { Cash } & 100 \\\text { Accounts Receivable } & 1,250 \\\text { Inventory } & 1,125 \\\text { Total Current Assets } & 2,475 \\\text { Net Fixed Assets } &{1,450}\\\text { Total Assets }&{3,925}\\\end{array}&\begin{array}{lr}\text { Notes Payable } & 850 \\\text { Accounts Payable } & 1,550 \\\text { Total Current Liab. } & 2,400 \\\text { Long Term Debt } & 425 \\\text { Common Stock } & 400 \\\text { Retained Earnings } & 700 \\\text { Total Liab. \& Earnings } & 3,925\end{array}\end{array}$

-Refer to Exhibit 14.9. Calculate the return on equity (ROE) for Rollerball Corporation and the Industry. $\begin{array}{rc}&\text { Rollerball } & \text { Industry Average } \\\hline a.& 115.0 \% & 67.5 \% \\b.&65.7 \% & 33.0 \% \\c.&41.8 \% & 33.0 \% \\d.&19.1 \% & 15.7 \% \\e.&8.7 \% & 15.7 \%\end{array}$

Understand the role of multimedia conglomerates in the entertainment industry.

Discuss the impact of technology and subscription services on film distribution and consumption.

Recognize the blending of documentary and fiction techniques in contemporary filmmaking.

Understand the concepts of process costing and the weighted-average method.

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Definitions:

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurer.

Hours Worked

Hours worked refer to the total number of hours spent by an individual or aggregate workforce in performing their job duties within a specific period.

Eggplants

Edible fruits (commonly considered vegetables in culinary contexts) from the nightshade family, known for their glossy purple skin and meaty texture.

Consumption

The use of goods and services by households or individuals, typically considered a primary economic activity alongside saving and investing.