N2. Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The followingdata relate to Nucor for four years. In 2017, Nucor's net income was higher by $175.2 million because of a one-time effectof the Tax Cuts and Jobs Act.Nucor Corporation($ in millions)Total assetsCommon stockholders' equityTotal debtSalesNet incomeInterest expenseAssumed marginal income tax rate2015 2016$14,327.07,849.94,388.52017 2018$15,223.58,254.74,357.116,208.1900.4169.20.37$ 15,841.3 $ 17,920.69,084.810,202.03,795.120,252.41,380.6173.60.374,291.11. Calculate Nucor's ROA for 2016, 2017, and 2018.2. Decompose ROA into operating profit margin and asset turnover components.3. Has Nucor's profitability changed over the three years?4. Calculate the rate of return on common stockholders' equity for 2016, 2017, and 2018.25,067.32,481.1135.50.23Source: Nucor Form 10-Ks for 2015-2018.Required:In the following analyses, eliminate the one-time net income effect of the Tax Cuts and Jobs Act on 2017's results.

Return on assets represents the percentage of how profitable a company's assets are in generating…

Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Nucor for four years. In 2017, Nucor's net income was higher by $175.2 million because of a one-time effect of the Tax Cuts and Jobs Act. Nucor Corporation ($ in millions) Total assets Common stockholders' equity Total debt Sales Net income Interest expense Assumed marginal income tax rate 2015 2016 $ 14,327.0 7,849.9 4,388.5 2017 2018 $ 15,223.5 $ 15,841.3 $ 17,920.6 8,254.7 9,084.8 10,202.0 4,357.1 3,795.1 4,291.1 16,208.1 900.4 169.2 0.37 20,252.4 1,380.6 173.6 0.37 25,067.3 2,481.1 1. Calculate Nucor's ROA for 2016, 2017, and 2018. 2. Decompose ROA into operating profit margin and asset turnover components. 3. Has Nucor's profitability changed over the three years? 4. Calculate the rate of return on common stockholders' equity for 2016, 2017, and 2018. 135.5 0.23 Source: Nucor Form 10-Ks for 2015-2018. Required: In the following analyses, eliminate the one-time net income effect of the Tax Cuts and Jobs Act on 2017's results.

Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Nucor for four years. In 2017, Nucor's net income was higher by $175.2 million because of a one-time effect of the Tax Cuts and Jobs Act. Nucor Corporation ($ in millions) Total assets Common stockholders' equity Total debt Sales Net income Interest expense Assumed marginal income tax rate 2015 2016 $ 14,327.0 7,849.9 4,388.5 2017 2018 $ 15,223.5 $ 15,841.3 $ 17,920.6 8,254.7 9,084.8 10,202.0 4,357.1 3,795.1 4,291.1 16,208.1 900.4 169.2 0.37 20,252.4 1,380.6 173.6 0.37 25,067.3 2,481.1 1. Calculate Nucor's ROA for 2016, 2017, and 2018. 2. Decompose ROA into operating profit margin and asset turnover components. 3. Has Nucor's profitability changed over the three years? 4. Calculate the rate of return on common stockholders' equity for 2016, 2017, and 2018. 135.5 0.23 Source: Nucor Form 10-Ks for 2015-2018. Required: In the following analyses, eliminate the one-time net income effect of the Tax Cuts and Jobs Act on 2017's results.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

N2.

Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following
data relate to Nucor for four years. In 2017, Nucor's net income was higher by $175.2 million because of a one-time effect
of the Tax Cuts and Jobs Act.
Nucor Corporation
($ in millions)
Total assets
Common stockholders' equity
Total debt
Sales
Net income
Interest expense
Assumed marginal income tax rate
2015 2016
$
14,327.0
7,849.9
4,388.5
2017 2018
$
15,223.5
8,254.7
4,357.1
16,208.1
900.4
169.2
0.37
$ 15,841.3 $ 17,920.6
9,084.8
10,202.0
3,795.1
20,252.4
1,380.6
173.6
0.37
4,291.1
1. Calculate Nucor's ROA for 2016, 2017, and 2018.
2. Decompose ROA into operating profit margin and asset turnover components.
3. Has Nucor's profitability changed over the three years?
4. Calculate the rate of return on common stockholders' equity for 2016, 2017, and 2018.
25,067.3
2,481.1
135.5
0.23
Source: Nucor Form 10-Ks for 2015-2018.
Required:
In the following analyses, eliminate the one-time net income effect of the Tax Cuts and Jobs Act on 2017's results.

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Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Nucor for four years. In 2017, Nucor's net Income was higher by $175.2 million because of a one-time effect of the Tax Cuts and Jobs Act. Nucor Corporation ($ in millions) Total assets Common stockholders' equity Total debt Sales Net income Interest expense Assumed marginal income tax rate Source: Nucor Form 10-Ks for 2015-2018. Required: In the following analyses, eliminate the one-time net Income effect of the Tax Cuts and Jobs Act on 2017's results. 1. Calculate Nucor's ROA for 2016, 2017, and 2018. 2. Decompose ROA Into operating profit margin and asset turnover components. 3. Has Nucor's profitability changed over the three years? 4. Calculate the rate of return on common stockholders' equity for 2016, 2017, and 2018. Complete this question by entering your answers in the tabs below. ROA Required 2 Required 3 2016 Required 1 Calculate Nucor's…
Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Nucor for four years. In 2017, Nucor’s net income was higher by $175.2 million because of a one-time effect of the Tax Cuts and Jobs Act. Nucor Corporation ($ in millions) 2015 2016 2017 2018 Total assets 14,327.0 15,223.5 15,841.3 17,920.6 Common stockholders’ equity 7,849.9 8,254.7 9,084.8 10,202.0 Total debt 4,388.5 4,357.1 3,795.1 4,291.1 Sales 16,208.1 20,252.4 25,067.3 Net income 900.4 1,380.6 2,481.1 Interest expense 169.2 173.6 135.5 Assumed marginal income tax rate 0.37 0.37 0.23 Source: Nucor Form 10-Ks for 2015–2018. Required: In the following analyses, eliminate the one-time net income effect of the Tax Cuts and Jobs Act on 2017’s results. Calculate Nucor’s ROA for 2016, 2017, and 2018. Decompose ROA into operating profit margin and asset turnover components. Has…
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