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Please see the attached word doc with questions. Please complete answers. please show me the formulas for the ROE and ROA questions Computing Return on

image text in transcribed

Please see the attached word doc with questions. Please complete answers.

please show me the formulas for the ROE and ROA questions

image text in transcribed Computing Return on Equity and Return on Assets The following table contains financial statement information for WalMart Stores, Inc. ($ millions) Total Assets Net Income Sales Equity 2010 $170,407 $14,370 $408,08 $70,468 5 2009 163,429 13,381 404,254 65,285 2008 163,514 12,731 378,799 64,608 (a) Compute the return on equity (ROE) for 2010 and 209. (Round your answers to one decimal place.) 2010 ROE =Answer % 0 2009 ROE =Answer 0 % What trend, if any, is evident? How does WalMart's ROE compare with the approximately 20% median ROE for companies in the Dow Jones Industrial average? WalMart's ROE decreased from 2009 to 2010 and is similar to the median for other companies in the Dow Jones average. WalMart's ROE increased from 2009 to 2010 and is slightly above the median for other companies in the Dow Jones average. WalMart's ROE increased from 2009 to 2010 and is similar to the median for other companies in the Dow Jones average. WalMart's ROE decreased from 2009 to 2010 but still exceeds the median for other companies in the Dow Jones average. (b) Compute the return on assets (ROA) for 2009 and 2010. (Round your answers to one decimal place.) 2010 ROA =Answer % 0 2009 ROA =Answer 0 % What trend, if any, is evident? How does WalMart's ROA compare with the approximately 6.7% median ROA for companies in the Dow Jones Industrial average? WalMart's ROA increased from 2009 to 2010 and is above the median for other Dow Jones companies. WalMart's ROA decreased from 2009 to 2010 and is similar to the median for other Dow Jones companies. WalMart's ROA increased from 2009 to 2010 and is slightly below the median for other Dow Jones companies. WalMart's ROA decreased from 2009 to 2010 but still exceeds the median for other Dow Jones companies. (c) Which of the following factors might allow a company like WalMart Stores, Inc to realize above average returns? WalMart Stores, Inc operates with more assets and equity than the average company. WalMart Stores, Inc's advertising budget is substantial, thus allowing it to generate a higher level of sales. WalMart has considerable market power over suppliers as a result of its considerable size, which may result in product cost savings. WalMart is also able to use its considerable advertising budget to its advantage. WalMart Stores, Inc's sales level is greater than the typical company. Please answer all parts of the

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