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Disaggregate ROA into profit margin (PM) and asset turnover (AT). (Round to one decimal place.) With a tax rate of 35%., compute the return on
Disaggregate ROA into profit margin (PM) and asset turnover (AT). (Round to one decimal place.)
With a tax rate of 35%., compute the return on financial leverage (ROFL) for the fiscal year ended January 31, 2015. (Round to one decimal place.)
Consolidated Statement of Earnings | ||
---|---|---|
Fiscal year ended | Jan. 31, 2015 | Feb. 1, 2014 |
Net sales | $14,549 | $14,664 |
Cost of goods sold and occupancy expenses | 9,275 | 8,775 |
Gross profit | 5,274 | 5,889 |
Operating expenses | 3,836 | 3,921 |
Operating income | 1,438 | 1,968 |
Interest expense | 74 | (8) |
Interest income | (5) | (6) |
Income before income taxes | 1,369 | 1,982 |
Income taxes | 536 | 778 |
Net earnings | $833 | $1,204 |
Selected Balance Sheet Data | ||
---|---|---|
Jan. 31, 2015 | Feb. 1, 2014 | |
Merchandise inventories | $1,615 | $1,620 |
Total assets | 7,422 | 7,065 |
Total stockholders equity | 2,755 | 4,080 |
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