Selected balance sheet and income statement information from the software company, Intuit Inc., follows ($ millions).

a. Compute the 2017 return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL). Use 35% as the incremental tax rate.

b. Disaggregate the ROA from part a into profit margin (PM) and asset turnover (AT).

c. What can we learn by comparing PM to AT? What explanation can we offer for the relation between ROE and ROA observed and for lntuit's use of financial leverage?

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Sales Interest Expense Total Assets Stockholders' Equity Net Income 2017 2017 2017 2017 2016 2017 2016 $5,964 $20 $1,211 $5,178 $4,068 $2.354 $1,354