Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lowell Company included the following items in its financial statements for 2021, the current year (amounts in millions): (Click the icon to view the
Lowell 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 Lowell's retum 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, XX% and other component ratios to three decimal places, X.XXXX) Net profit margin ratio 11.9 Asset turnover 0.371 ROA 4.4 % Calculate the rate of return on common equity (ROE). Select the formula needed and then enter the amounts to calculate ROE for 2021. (Dividends paid are not preferred. Round percentages to decimal place, XX% and other component ratios to three decimal places, XXXXX) Return on assets (ROA) 44 Etext pages Get more help- Leverage ratio ROE % Data table Payment of long-term debt Proceeds from issuance $ 17,055 Dividends paid Net sales $ 220 of common stock 8,415 Current year 20,000 Total liabilities: Preceding year 44,000 Current year-end 32,311 Net income Preceding year-end 38,039 Current year 2.379 Total stockholders' equity Ireceding year 2,010 Current year-end 23.477 Preceding year-end 14,047 Operating income: Current year 4,874 Long-term liabilities 6,600 Preceding year 3,998
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