Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LO1, 2, 3 Oracle (ORCL) E4-34. Disaggregate Traditional DuPont ROE Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations

image text in transcribed
LO1, 2, 3 Oracle (ORCL) E4-34. Disaggregate Traditional DuPont ROE Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder.) ( $ millions May 31, 2015 May 31, 2014 Operating assets..... ... $ 56,535 $51,447 Nonoperating assets........ ............ 54,368 Total assets... ............... 110,903 90,266 38,819 Operating liabilities..... Nonoperating liabilities... Total liabilities..... . 19,847 18,722 41,958 ............ 61,805 42,819 24,097 Total Oracle stockholders' equity............ 48,663 $46,878 Total revenues........ ............... 38,226 Operating income before tax ............... 13,871 Nonoperating expense before tax........... 1,037 Tax expense..... ........... 2,896 Net income............. ................ 0 9,938 a.Compute return on equity (ROE). b.Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. c.Calculate the profitability and productivity components of ROA. d.Confirm the ROA from part a. above with the full DuPont disaggregation: ROE - PMX ATX FL

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

Step: 3

blur-text-image

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 Oracle E Business Suite Common Issues

Authors: Jeffrey T. Hare

1st Edition

1329529766, 978-1329529762

More Books

Students also viewed these Accounting questions