Computing and Interpreting Return on Assets and Its Components McDonalds Corporation (MCD) reported the following balance sheet and income statement data for 2016 through 2018.

$ millions Total Assets Net Income Sales

2018 $34,451.8 $5,628.1 $24,179.0

2017 35,493.9 4,932.7 26,243.5

2016 32,575

.1 a. What is McDonalds return on assets for 2018 and 2017? Round answers to one decimal place (ex: 0.2345 = 23.5%).

2018 2017

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b. Determine the profit margin for 2018 and 2017. Round answers to one decimal place (ex: 0.2345 = 23.5%).

2018 2017

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c. Calculate the asset turnover for 2018 and 2017. Round answers to two decimal places.

2018 2017

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d. What factor is mainly responsible for the change in McDonalds ROA over this period? Is it profit margin or asset turnover or both? Answer Profit margin