Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Compute ROA, Profit Margin, and Asset Turnover Refer to the financial information for Target Corporation, presented below: Target Corporation Balance Sheets ($ millions)January 28, 2012January
Compute ROA, Profit Margin, and Asset Turnover Refer to the financial information for Target Corporation, presented below:
Target Corporation Balance Sheets ($ millions)January 28, 2012January 29, 2011Assets Cash and cash equivalents$794$1,712Accounts receivable, net5,9276,153Inventory7,9187,596Other current assets1,8101,752Total current assets16,44917,213Property and equipment, net29,14925,493Other noncurrent assets1,032999Total assets$46,630$43,705Liabilities and shareholders investment Accounts payable$6,857$6,625Accrued liabilities3,6443,326Current portion of long-term debt and notes payable3,786119Total current liabilities14,28710,070Long-term debt13,69715,607Deferred income taxes1,191934Other noncurrent liabilities1,6341,607Total shareholders investment15,82115,487Total liabilities and shareholders investment$46,630$43,705Target Corporation Income Statement ($ millions)Fiscal year ended January 28, 2012 Sales$70,766 Net credit card revenues1,399 Total revenues72,165 Cost of sales47,860 Selling, general and administrative expenses14,106 Credit card expenses446 Depreciation and amortization2,131 Earnings before interest expense and income taxes7,622 Net interest expense866 Earnings before income taxes6,756 Provision for income taxes1,527 Net earnings$5,229
Help on section B):
Return on Assets = % b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). (Round your answers to one decimal place.) Profit Margin = Asset Turnover =Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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