This exercise is built around Kroger's financial statements from the chapter. Total shareholders' equity-The Kroger Co. was $5,384 Required: 1. Kroger earned an ROA of 6.9% in fiscal 2014. What was ROCE that year? (Round your answer to 1 decimal place.) 2. ROA at the company fell to 3.7% in fiscal 2017 (adjusted to eliminate the one-time effect on earnings of the Tax Cuts and Jobs Act). What was ROCE that year (also adjusted for the Tax Cuts and Jobs Act)? (Round your answer to 1 decimal place.) 3. Did financial leverage help or hurt Kroger in fiscal 2017 ? EXHIBIT 6.6 The Kroger Co. Comparative Balance Sheets Liabilities and Shareholders' Equity Current liabilities: Current portion of long-term debt including obligations under capital leases and financing obligations Trade accounts payable Accrued salaries and wages Deferred income taxes Liabilities held for sale Other current liabilities Total current liabilities Long-term debt including obligations under capital leases and financing obligations Deferred income taxes Pension and postretirement benefit obligations Other long-term liabilities Total liabilities Shareholders' Equity: Common shares, \$1 par per share Additional paid-in capital Accumulated other comprehensive loss Accumulated earnings Common shares in treasury, at cost Total shareholders' equity-The Kroger Co. Noncontrolling interests Total equity Total liabilities and shareholders' equity \begin{tabular}{rrrrrrr} $3,560 & $ & 2,252 & $ & 2,370 & $ & 1,874 \\ 5,858 & & 5,818 & & 5,728 & & 5,052 \\ 1,099 & & 1,234 & & 1,426 & & 1,291 \\ 251 & & 221 & & 287 & & \\ 259 & & & & & \\ \hline 3,421 & & 3,305 & & 3,226 & & 2,888 \\ \hline 14,197 & & & & \\ \hline & & 12,860 & & 12,971 & & 11,392 \\ \hline \end{tabular} \begin{tabular}{rrrr} 12,029 & 11,825 & 9,709 & 9,723 \\ 1,568 & 1,927 & 1,752 & 1,209 \\ 792 & 1,524 & 1,380 & 1,463 \\ 1,706 & 1,659 & 1,287 & 1,268 \\ \hline 30,292 & 229,795 & 227,099 & \( \stackrel{25,055}{\hline} \) \end{tabular} Source: The Kroger Company Form 10-Ks for the years presented. Source: Amounts derived from information in The Kroger Company's Form 10-Ks for the years presented. EXHIBIT 6.1 The Kroger Co. Comparative Income Statements Source: The Kroger Company Form 10-Ks for the years presented