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P1-35. Computing Return on Equity and Return on Assets (LO3) The following table contains financial statement information for Wal-Mart Stores, Inc. ($ millions) Total Assets

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P1-35. Computing Return on Equity and Return on Assets (LO3) The following table contains financial statement information for Wal-Mart Stores, Inc. ($ millions) Total Assets Net Income Sales Equity 2011 . . $180,663 $16,389 $421,849 $68,542 2010 . 170,407 14,370 408,085 70,468 2009 . . .. 163,429 13,381 404,254 65,285 Required a. Compute the return on equity (ROE) for 2010 and 2011. What trend, if any, is evident? How does Wal-Mart's ROE compare with the approximately 20% median ROE for companies in the Dow Jones Industrial average for 2011? b. Compute the return on assets (ROA) for 2010 and 2011. What trends, if any, are evident? How does Wal-Mart's ROA compare with the approximate 6.7% median ROA for companies in the Dow Jones Industrial average for 2011? c. What factors might allow a company like Wal-Mart to reap above-average returns

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