Calculate the following ratios: return on equity, return on assets (levered), return on sales (levered), asset turnover, and financial leverage. ### Financial OverviewThis section provides a summary of financial data for the years 2018 and 2017, expressed in millions.#### Balance Sheet- **Total Assets:** - 2018: $34,986 million - 2017: $33,551 million- **Shareholders' Equity:** - 2018: $14,127 million - 2017: $11,847 million#### Income Statement- **Net Sales:** - 2018: $22,561 million - 2017: $20,776 million- **Net Income:** - 2018: $4,920 million - 2017: $1,007 millionThis data illustrates the financial performance and position of the company, showcasing increases in assets, equity, sales, and income from 2017 to 2018.

Ratio analysis helps business to know the financial position of it using the interpretation of the…

Answered: Calculate the following ratios: return…

Calculate the following ratios: return on equity, return on assets (levered), return on sales (levered), asset turnover, and financial leverage.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Calculate the following ratios: return on equity, return on assets (levered), return on sales (levered), asset turnover, and financial leverage.

### Financial Overview

This section provides a summary of financial data for the years 2018 and 2017, expressed in millions.

#### Balance Sheet

- **Total Assets:**
- 2018: $34,986 million
- 2017: $33,551 million

- **Shareholders' Equity:**
- 2018: $14,127 million
- 2017: $11,847 million

#### Income Statement

- **Net Sales:**
- 2018: $22,561 million
- 2017: $20,776 million

- **Net Income:**
- 2018: $4,920 million
- 2017: $1,007 million

This data illustrates the financial performance and position of the company, showcasing increases in assets, equity, sales, and income from 2017 to 2018.

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