Computing Return on Equity and Return on AssetsThe following table reports financial statement information for Meta (Facebook's parent company).$ millions Total Assets Net Income Sales EquityFY3FY2$482,890$431,566$60,320 $303,183 $326,854$102,362 $306,615 $324,685FY1$414,222$67,980 $223,509 $333,554Requireda. Compute the following ratios for the two most recent years. NOTE: Round any intermediate calculations to the nearest whole dollar amount.RatiosNumerator DenominatorReturn on equity (ROE)ResultFY3FY2Return on assets (ROA)FY3FY2Profit margin (PM)FY3FY2Asset turnover (AT)FY3FY2$$9696$$9696$$9696b. Which of the following best explains the change in ROA during FY3?Check

1. Return on Equity (ROE)FY3:Net Income: $60,320 millionEquity: $326,854 millionReturn on…

Answered: Computing Return on Equity and Return…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1WT

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