1.
Introduction:
Return on total assets: The return on total assets is a ratio that determines the proportion in which the net income is earned by the corporation for each dollar of total assets employed.
:
The return on total assets of Company A for two years.
2.
Introduction:
Return on total assets: The return on total assets is a ratio that determines the proportion in which the net income is earned by the corporation for each dollar of total assets employed.
The nature of change in return on total assets.
3.
Introduction:
Return on total assets: The return on total assets is a ratio that determines the proportion in which the net income is earned by the corporation for each dollar of total assets employed.
The method for recording the investment made in stock of another corporation.
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FINANCIAL ACCT.FUND.(LOOSELEAF)
- Perform the DuPont analysis of ABC Corporation’s Return on Equity. Show all the steps and write a short paragraph explaining what the analysis reveals. Note the years: Write your analysis of how things changed from 2015 to 2016. Select Financial Data for ABC Corp. 2016 2015 Sales 1100 1000 Earnings After Tax 105 100 Total Assets 1800 1500 Total Equity 630 600arrow_forwardReview Apple’s balance sheet in Appendix. Identify one asset account that requires adjustment before annual financial statements can be prepared. What would be the effect on the income statement if this asset account were not adjusted? (Number not required, but comment on over- or understating of net income.)arrow_forwardPlease do not give solution in image format thankuarrow_forward
- Evaluating Business Segment Information Hewlett-Packard Company reports that its "organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations." In its disclosures of segment information, there are seven segments-Personal Systems, Printing, Enterprise Group, Enterprise Services, Software, HP Financial Services, and Corporate Investments. The company provides the following information about these business segments: 2014 2013 ($ millions) Total net revenue: Personal Systems Printing Enterprise Group Enterprise Services Software HP Financial Services Corporate Investments Earnings from operations: Personal Systems Printing Enterprise Group Enterprise Services Software HP Financial Services Corporate Investments Total assets: Personal Systems Printing Enterprise Group. Enterprise Services Software HP Financial Services Corporate Investments $34,303 $32,179 22,979 23,896 27,814 28,081 22,398 24,061 3,933 4,021 3,498 3,629…arrow_forwardYou are preparing pro forma financial statements for 2017 using the percent-of-sales method. Sales were $100,000 in 2016 and are projected to be $120,000 in 2017. Net income was $5,000 in 2016 and is projected to be $6,000 in 2017. Equity was $45,000 at year-end 2015 and $50,000 at year-end 2016. Assuming that this company never issues new equity, never repurchases equity, and never changes its dividend payout ratio, what would be projected for equity at year-end 2017?arrow_forwardPlease do not give solution in image format thankuarrow_forward
- How do you solve the change in the book value of the company's equity that took place at the end of 2018?arrow_forwardCompute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements. ($ 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…arrow_forwardCompute 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…arrow_forward
- What have been the possible reasons for the changes in ROEs ? •Decompose the (Return on Equity) ROE into the main components: ROA and EM •Analyse the sources of Return on Asset (ROA) : Asset Utilisation and Profit Margin ratios. (PM) •Identify the sources of the changes in AU and PMarrow_forwardSome balance sheet information is shown below: (all values in millions of dollars). a. What change in the book value of the company's equity took place at the end of 2018? b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain. a. What change in the book value of the company's equity took place at the end of 2018? The book value of equity ▼ increased or decreased by $_____ billion from the end of the previous year, and was ▼ positive or negative. (Select from the drop-down menus and round to three decimal places.)arrow_forwardI want to answer this questionarrow_forward
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