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Credit card expenses 446 Depreciation and amortization 2,131 Earnings before interest expense and income taxes 5,322 Net interest expense 866 Earnings before income taxes 4,456

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Credit card expenses 446 Depreciation and amortization 2,131 Earnings before interest expense and income taxes 5,322 Net interest expense 866 Earnings before income taxes 4,456 Provision for income taxes 1,527 Net earnings $2,929 a. Compute its return on assets (ROA) for the fiscal year ending January 28, 2012. Interest income for this year was $3 million, so interest expense was $869 million. Assume a statutory tax rate of 35%. (Round your answers to one decimal place.) Return on Assets = 7.7 % b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). (Round your answers to one decimal place.) Profit Margin = 5 %

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