P1.43 Computing Return on Equity and Return on Assets The following table contains financial statement infornrntion for Walmar t Inc.

$millions Total Assets Net Income Sales Equity 2018 .. . ........... $219,295 $ 6,670 $510,329 $72,496 2017 .............. 204,522 9,862 495,761 77,869 2016 .. . ....... . ... 198,825 13,643 481 ,317 77,798 Required

a. Compute return on equity (ROE) for the two recent years.

b. Compute return on assets (ROA) for the two recent years.

c. Compute profit margin (PM) for the two recent years.

d. Compute asset turnover (AT) for the two recent years.

e. Which of the following best explains the change in ROA during 2018?
l. The company's profitabi lity weakened cons iderably.
2. The company's asset productivity weakened considerably.
3. The company had higher sales in 2018.
4. The company had higher assets 2018.