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please help. Computing, Analyzing, and interpreting Return on Equity and Return on Assets Following are summary financial statement data for Nordstrom Inc. for fiscal years
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Computing, Analyzing, and interpreting Return on Equity and Return on Assets Following are summary financial statement data for Nordstrom Inc. for fiscal years ended 2017 through 2019. S thousands Sales Net income Total assets Equity 2019 2018 2017 $16,019 515,633 $14,905 575 446 361 8,122 8,358 8,094 882 987 879 a. Compute the return on assets (ROA) for fiscal years ended 2019 and 2018, Round answers to one decimal place (ex: 0.2345 = 23.5%). 2019 2018 b. Compute the profit margin (PM) for fiscal years ended 2019 and 2018. Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 2019 c. Compute the asset turnover (AT) for fiscal years ended 2019 and 2018. Round answers to two decimal places. 2019 2018 d. Which component of ROA (profit margin or asset turnover or both) drives the change in ROA in fiscal year ended 2019? e Compute the return on equity (ROE) for fiscal years ended 2019 and 2018 Round answers to one decimal place (ex: 02345 = 23.5%). 2019 2018 Nordstrom has a large negative balance in retained earnings (a retained deficit How does this affect the company's ROE does it increase it or decrease it Step by Step Solution
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