Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3M Company Common-size Income Statements Dec. 31, 2014 Dec. 31, 2013 Net sales 31,821 30,871 Operating expenses Cost of sales Selling, general & admin. expenses
3M Company Common-size Income Statements Dec. 31, 2014 Dec. 31, 2013 Net sales 31,821 30,871 Operating expenses Cost of sales Selling, general & admin. expenses Research &development expenses 16,447 6,469 1,770 7,135 16,106 6,384 1,715 6,666 Operating income Interest expense and income: 142 (33) 109 7,026 2,028 $4,998 145 (41) 104 6,562 1,841 $4,721 Interest expense Interest income Net interest Income before taxes &minority interest Provision for income taxes Net income IM Company and Subsidiaries Common-size Balance Sheets Dec. 31, 2014 Dec. 31,2013 Cash and cash equivalent Accounts receivable Total inventories Other current assets Total current assets Investments Property, plant and equipment, net 3,337 3,706 1,298 11,765 930 8,489 12,733 575 8,652 7,345 1,688 Intang ble assets, net Other assets Total assets $31,269 33,550 Short-term debt & current portion of L-T debt Accounts payable Accrued payroll $106 $1,683 1,799 Accrued income taxes 417 2,891 ,498 Other current liabilities Total current liabilities 5,998 Long-term debt Other liabilities Total liabilities Stockholders equity, net Total liabilities and stockholders' equity 18,127 15,602 17,948 13,142 33,550 a. Compute 3M's 2014 return on assets (ROA) Assume a tax rate of 35%. Do not round until your final answer. Round answer to one decimal place (ie, 0.2568-25.7%). b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Confirm ROA-PM Do not round until your final answers. Round PM and ROA to onedecimaLplace (i.e. 0.2568-25.7%) Round AT to 3 decimal places Profit margin Asset turnover ROA (PM x AT) Check
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started