Question
Following are selected financial statement data from 3M Company for 2015 through 2018. $ millions Total Assets Net Income Sales 2015 $33,212 $4,938 $31,182 2016
Following are selected financial statement data from 3M Company for 2015 through 2018.
| $ millions | Total Assets | Net Income | Sales |
|---|---|---|---|
| 2015 | $33,212 | $4,938 | $31,182 |
| 2016 | 33,235 | 5,159 | 31,012 |
| 2017 | 38,367 | 4,966 | 32,607 |
| 2018 | 36,865 | 5,470 | 33,748 |
a. What was 3M Companys return on assets (ROA) for 2016, 2017, and 2018? Round answers to one decimal place (ex: 0.2345 = 23.5%).
| 2016 | 2017 | 2018 |
|---|---|---|
| Answer | Answer | Answer |
b. Determine profit margin (PM) for each of the three years 20162018. Round answers to one decimal place (ex: 0.2345 = 23.5%).
| 2016 | 2017 | 2018 |
|---|---|---|
| Answer | Answer | Answer |
c. Determine asset turnover (AT) for each of the three years 20162018. Round answers to two decimal places.
| 2016 | 2017 | 2018 |
|---|---|---|
| Answer | Answer | Answer |
d. What factor is mainly responsible for the change in 3Ms ROA from 2016 to 2017? Is it profit margin or asset turnover or both? AnswerAsset turnoverProfit marginBoth
e. What factor is mainly responsible for the change in 3Ms ROA from 2017 to 2018? Is it profit margin or asset turnover or both?
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Construction Accounting And Financial Management
Authors: Steven J. Peterson
1st Edition
0131109391, 978-0131109391
