Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Littleton Company included the following items in its financial statements for 2021, the current year (amounts in millions): (Click the icon to view the financial
Littleton Company included the following items in its financial statements for 2021, 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 Littleton's return on assets and return on common equity during 2021 (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 2021. (Dividends paid are not preferred. Round percentages to one decimal place, X.X% and other component ratios to three decimal places, X.XXX.) Net profit margin ratio Asset turnover = ROA 11.1 % x Requirements % 1. Use DuPont Analysis to calculate Littleton's return on assets and return on common equity during 2021 (the current year). The company has no preferred stock outstanding. 2. Do the company's rates of return look strong or weak? Give your reason. 3. What additional information do you need to make the decision in requirement 2? Print Done Data table Payment of long-term debt $ 17,055 Dividends paid 195 Proceeds from issuance Net sales: of common stock 8,415 Current year 50,000 Total liabilities: Preceding year 81,000 Current year-end 32,315 Net income: Preceding year-end 38,035 Current year 5,552 Total stockholders' equity: Preceding year 2,001 Current year-end 23,481 Operating income: Preceding year-end Long-term liabilities 14,037 Current year 6,249 6,580 Preceding year 4,002 Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started