Exhibit 14 -Refer to Exhibit 14

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. $\begin{array}{rc}&\text { Rollerball } & \text { Industry Average } \\\hline a.& 115.0 \% & 67.5 \% \\b.&65.7 \% & 33.0 \% \\c.&41.8 \% & 33.0 \% \\d.&19.1 \% & 15.7 \% \\e.&8.7 \% & 15.7 \%\end{array}$