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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Computing Return on Equity and Return on Assets The following table reports financial statement information for Meta (Facebook's parent company). $ millions Total Assets Net Income Sales Equity FY3 FY2 $185,727 $165,987 $23,200 $116,609 $125,713 $39,370 $117,929 $124,879 FY1 $159,316 $26,146 $85,965 $128,290 Required a. Compute the following ratios for the two most recent years. NOTE: Round any intermediate calculations to the nearest whole dollar amount. Numerator Denominator Result Ratios Return on equity (ROE) FY3 FY2 Return on assets (ROA) FY3 FY2 Profit margin (PM) FY3 FY2 Asset turnover (AT) FY3 FY2 $ $ % % $ $ % % $ $ % % $ b. Which of the following best explains the change in ROA during FY3? ÷
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Personal hotspot.. Used 72.4 MB Prepare the required financial statements for Metro Company Assume you are an analyst evaluating Metro Company. The following data are available in your financial analysis (unless otherwise indicated, all data are as of December 31, 2015): - 50 points Retained earnings, 12/31/2014 Gross profit margin ratio Day's sales in inventory Acid-test ratio Non current assets Day's sales in receivables Shareholder's equity to total debt Sales (all on credit) Common stock $15 par value; 10,000 shares issued and outstanding; issued at $21 per share. $98,000 25% 45 days 2.5 times $280,000 18 days 4 to 1 $920,000 Using these data, construct the December 31, 2015 balance sheet for your analysis. Operating expenses (excluding taxes and cost of goods sold for 2015) are $180,000. The tax rate is 40%. Assume a 360-day year in ratio computations. Current assets consist of cash, accounts receivable, and inventories. Your answer -> 41 •.. Honor Code | bart.. Lite…

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