d. Compute adjusted ROA (assume a statutory tax rate of 22% and pretax net interest expense of $207).Round answer to two decimal places (ex: 0.12345= 12.35%)ol* %Check Compute Measures for DuPont Disaggregation AnalysisUse the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder).($ millions)2017SalesNet income, consolidatedNet income attributable to 3M shareholdersAssetsTotal equityEquity attributable to 3M shareholdersa. Compute return on equity (ROE).Round answer to two decimal places (ex: 0.12345 = 12.35%)54.6* %b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage.• Round profit margin to two decimal places (ex: 0.12345= 12.35%)• Round asset turnover and financial leverage to three decimal places.Profit margin 16.33Asset turnover 0.882018$32,7655,3635,34936,500 $37,9879,848 11,6229,796 11,563* %Financial leverage 3.73c. Compute ROARound answer to two decimal places (ex: 0.12345= 12.35%)14.36* %x

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Answered: Use the information below for 2018 for…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 54CE

See similar textbooks

Similar questions

Ratio Analysis Consider the following information taken from the stockholders equity section: How do you interpret the companys payout and profitability performance? Required: 1. Calculate the following for 2020. (Note. Round answers to two decimal places.) 2. CONCEPTUAL CONNECTION Assume 2019 ratios were: and the current year industry averages are: How do you interpret the companys payout and profitability performance?
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements ($ millions) Sales Net income, consolidated Net income attributable to 3M shareholders Pretax interest expense Assets Total equity Equity attributable to 3M shareholders a. Compute return on equity (ROE) from the perspective of a 3M shareholder. Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE. Denominator Numerator Net income attributable to 3M shareholders ◆ Average total equity $ 5349 $ $ $ b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. (Perform these computations from a consolidated perspective). Profit Margin (PM) Note: 1. Select the appropriate numerator and denominator used to compute PM from the drop-down menu options. 2. Enter the numerator and denominator amounts to…
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements. ($ millions) Sales Net income, consolidated Net income attributable to 3M shareholders Pretax interest expense Assets Total equity Equity attributable to 3M shareholders Net income consolidated S a. Compute return on equity (ROE) from the perspective of a 3M shareholder. Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE Numerator Denominator E Net income consolidated (adjusted) 2018 2017 $32,765 5,363 5,349 S 207 36,500 $37,987 9,848 11,622 9,796 11,563 S + Average total equity 5,349 $ b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. (Perform these computations from a consolidated perspective). Profit Margin (PM) Note: 1. Select the appropriate numerator and denominator used to…
Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). 2014 ($millions) Sales Net income, consolidated Net income attributable to 3M shareholders Assets Total equity Equity attributable to 3M shareholders a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345= 12.35%) % 2015 $30,674 5,056 5,048 32,898 $31,389 11,747 13,142 11,708 13,109 b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. • Round profit margin to two decimal places (ex: 0.12345= 12.35%) • Round asset turnover and financial leverage to three decimal places. Profit margin Asset turnover % Financial leverage c. Compute ROA. Round answer to two decimal places (ex: 0.12345= 12.35%) ROA % d. Compute adjusted ROA (assume a statutory tax rate of 37% and pretax net interest expense of $123). Round…
provide the answer of d part
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements ($ millions) 2018 2017 Sales $32,765 Net income, consolidated 5,363 Net income attributable to 3M shareholders 5,349 Assets 36,500 $37,987 Total equity 9,848 11,622 Equity attributable to 3M shareholders 9,796 11,563 d. Compute adjusted ROA (assume a statutory tax rate of 22% and pretax net interest expense of $207).Round answer to two decimal places (ex: 0.12345 = 12.35%)
Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings (a) Dollars 1872000 1100736 771264 263952 9360 Your answer is correct. 507312 i 54288 497952 Duke Company 2020 i $1,872,000 1,100,736 263,952 9,360 54,288 443664 326,000 519,600 66,000 Duke Company 107,800 498.000 173,800 2019 $314,500 497,900 75.800 91,600 Prepare a vertical analysis of the 2020 income statement data for Duke Company and Lord Company. (Round percentages to 1 decimal place, e.g. 12.1%) 498.000 147,000 Lord Company 2020 $559,000 297,388 79,378 4,472 Percent 6.149 141,000 83.500 $78,600 125,100 29,800 36,600 30.400 Condensed Income Statement For the Year Ended December 31, 2020 122.500 122,500 35,000 100 %% 27.1 58.8 i% 41.2 % 14.1 i% % % 26.6 % 2.9 i % 2019 23.7 % $ 25,600 $ 25,800 Dollars 559000 297388 Lord Company 261612 79378 i 182234 4472 177762 6149 i 171613 Percent…
Compute the 2022 return on assets and the return on common stockholders’ equity for both companies. (Round answers to 1 decimal place, e.g. 12.1%.) Sandhill Company Wildhorse Company Return on assets enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place % Return on common stockholders’ equity
Compute DuPont Analysis Ratios Selected balance sheet and income statement information for Humana Inc., a health and well-being company, follows. 2018 2017 Company ($ millions) Ticker Revenue income Assets Assets Humana Inc HUM $66,832 $11,603 $35,333 $37,098 2018 Compute the following 2018 ratios for Humana. a. Return on equity (ROE) $ $ Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE. Numerator Denominator 0 $ $ 2018 Net 2018 2017 Stockholders' Stockholders' 0 $ ♦ 0 b. Profit margin (PM) Note: 1. Select the appropriate numerator and denominator used to compute PM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute PM. Numerator Denominator 0 $ ◆ Equity $20,081 0 ROE 0 PM c. Financial leverage (FL) Note: 1. Select the appropriate numerator and denominator used to compute FL from the drop-down menu options. 2. Enter the…
Computing and Disaggregating Return on Equity Following are selected balance sheet and income statement information from a recent annual report for a company. $ millions April 2, 2020 March 28, 2019 Income statement information: Sales $20,244 $22,353 Net income 990 2,106 Balance sheet information: Total assets 18,639 18,318 Total stockholders’ equity 11,232 11,673 Answer the following questions, rounding your answers to two decimal places (for example, enter .46 for .455558). a. Calculate Ralph Lauren’s return on equity for the fiscal year ended April 2, 2020.Answer b. Disaggregate return on equity to its DuPont components of activity (profit margin), activity (asset turnover), and leverage (financial leverage). Demonstrate how the product of the components is equal to return on equity. Profit margin × Asset turnover × Financial leverage = Return on equity Answer × Answer × Answer = Answer Answer Answer Answer
The following financial information is for Cullumber Company. CULLUMBER COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $ 70,000 $64,000 Debt investments (short-term) 53,000 39,000 Accounts receivable 108,000 90,000 Inventory 229,000 162,000 Prepaid expenses 30,000 25,000 Land 130,000 130,000 Building and equipment (net) 264,000 185,000 Total assets $884,000 $695,000 Liabilities and Stockholders' Equity Notes payable $172,000 $102,000 Accounts payable 65,000 51,000 Accrued liabilities 41,000 41,000 Bonds payable, due 2025 250,000 172,000 Common stock, $10 par 202,000 202,000 Retained earnings 154,000 127,000 Total liabilities and stockholders' equity $884,000 $695,000 CULLUMBER COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $890,000 $786,000 Cost of goods sold 641,000 575,000 Gross profit 249,000 211,000 Operating expenses 194,000 159,000 $ 5000 $ 52,000 Net income Additional information: Inventory at the beginning of 2021 was $116,000. 1. 2.…
Use the information provided to answer the questions that follows below: Extract of Statement of Changes in Equity for the year ended 31 December 2020 Retained earnings R Balance on 01 January 2020 1500 000 Profit after tax 480 000 Dividends paid and proposed in 2020 (180 000) Balance on 31 December 2020 1 800 000 INFORMATION The information provided below was extracted from the accounting records of Harmony Limited on 31 December 2020: Harmony Limited Extract of Statement of Comprehensive Income for the year ended 31 December 2020 Sales 6 600 000 Cost of sales (3 900 000) Gross profit 2 700 000 Operating expenses (1710 000) Selling and administrative expenses 1 260 000 Depreciation 450 000 Operating profit 990 000 Interest expense (270 000) Profit before tax 720 000 Company tax (240 000) Profit after tax 480 000

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS