Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lawrence Company included the following items in its financial statements for 2018, the current year (amounts in millions): (Click the icon to view the financial

image text in transcribed
image text in transcribed
Lawrence Company included the following items in its financial statements for 2018, the current year (amounts in millions): (Click the icon to view the financial statement items.) Read the requirements. Requirement 1. Use DuPont Analysis to calculate Lawrence's return on assets and return on common equity during 2018 (the current year). The company has no preferred stock outstanding. Start by calculating the rate of return on total assets (ROA). Select the DuPont model formula needed and then enter the amounts to calculate ROA for 2018. (Dividends paid are not preferred. Round percentages to one decimal place, X.X% and other component ratios to three decimal places, X.XXX.) ROA Net profit margin ratio 18.5 Asset turnover 0.649 Calculate the rate of return on common equity (ROE). Select the formula needed and then enter the amounts to calculate ROE for 2018. (Dividends paid are not preferred. Round percentages to one decimal place, XX% and other component ratios to three decimal places, X.XOOX.) Net profit margin Asset turnover . ROE 18.5 % X Data Table 195 17,050 35,000 8,400 Dividends paid...........$ Net sales: Current year ...... Preceding year. Net income: Current year . Preceding year. Payment of long-term debt .....$ Proceeds from issuance of common stock ..... Total liabilities: Current year-end ....... Preceding year-end.... . Total stockholders' equity: 28,000 Choose from any listo 32,313 38,025 ck Answer 6,488 1,993 2 pemaining i Data Table 17,050 Dividends paid....... Payment of long-term debt ..... $ Proceeds from issuance .. $ 195 Net sales: of common stock. ... 8,400 35,000 28,000 Total liabilities: 32,313 38,025 Current year Preceding year ..... Net income: Current year ...... Preceding year ....... Operating income: Current year.. Preceding year .. Current year-end .... Preceding year-end Total stockholders' equity: Current year-end Preceding year-end.... Long-term liabilities 6,488 1,993 23,485 14,043 6,570 9,125 4,012 Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Text And Cases

Authors: W. Robert Knechel, Knechel

1st Edition

0538819340, 9780538819343

More Books

Students also viewed these Accounting questions