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Need formulas for each problem. I need to understand how to calculate and where the 35% comes into place. I know ROA = NI/Average Total
Need formulas for each problem. I need to understand how to calculate and where the 35% comes into place.
I know ROA = NI/Average Total Assets.
Comparing Profitability and Turnover Ratios for Retail Companies Selected financial statement data for Best Buy Co, Inc., The Kroger Co., Nordstrom, Inc., Staples, Inc., and Walgreen Co. is presented in the following table: Sales revenue Cost of sales Interest expense Net income Average receivables2318 897 Average inventories5,914 5,140 Average PP&E Average total assets 16,927 23491 $ millions) Best Buy Kroger Nordstrom Staples Walgreen $54,705 $94,374 $14877 $29,022 $76,184 6,892 18.580 51,992 89 823 1,124 2,964 2.030 2,002 2474 1,163 2,496 7,811 2,394 2,11411355 7.977 13,671 29,865 38,413 71,794 134 435 232 756 132 174 ,647 14,306 Assume a statutory tax rate of 35% for all companies. Required a. Compute return on assets (ROA), profit margin (PM) and asset turnover (AT) for each company. (Round your answers to one decimal place.) Best Buy Kroger Staples Walgreen ROA 96 PM 96 6 ATStep by Step Solution
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