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Please use the following information for the next 8 questions. Below is information from reformulated financial statements for Johnson and Johnson Corporation (in millions). Operating

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Please use the following information for the next 8 questions. Below is information from reformulated financial statements for Johnson and Johnson Corporation (in millions). Operating assets Short term debt securities Operating liabilities Bonds payable Boook value 2019 $4,750 475 1900) (1,585) 2,740 2018 $3,550 1,000 (795) (2,155) 1,600 Sales Operating expenses Interest revenue Interest expense Tax expense (tax rate - 30%) Earnings (net) 3.100 (2,165) 327 (413) (255) $594 Question 22 (4 points) Johnson and Johnson's short-term borrowing rate is 40% after tax Calculate ROOA (Return on operating assets) for 2019. use the average net financial obligations in calculating the after-tax implicit interest and use the average operating assets in the denominator when calculating ROOA. 18.24% 19.81% 27.37% 16.58% Question 23 (4 points) Calculate OLLEV (Operating Liability Leverage) for 2019, use the average operating liabilities and the average NOA in the calculation 0.3284 0.2566 0.5327 0.2981 Question 24 (4 points) Calculate OLSPREAD (Operating Liability Spread) for 2019. 17.82% 9.76% 14.67% 12.58% Please use the following information for the next 8 questions. Below is information from reformulated financial statements for Johnson and Johnson Corporation (in millions). Operating assets Short term debt securities Operating liabilities Bonds payable Boook value 2019 $4,750 475 1900) (1,585) 2,740 2018 $3,550 1,000 (795) (2,155) 1,600 Sales Operating expenses Interest revenue Interest expense Tax expense (tax rate - 30%) Earnings (net) 3.100 (2,165) 327 (413) (255) $594 Question 22 (4 points) Johnson and Johnson's short-term borrowing rate is 40% after tax Calculate ROOA (Return on operating assets) for 2019. use the average net financial obligations in calculating the after-tax implicit interest and use the average operating assets in the denominator when calculating ROOA. 18.24% 19.81% 27.37% 16.58% Question 23 (4 points) Calculate OLLEV (Operating Liability Leverage) for 2019, use the average operating liabilities and the average NOA in the calculation 0.3284 0.2566 0.5327 0.2981 Question 24 (4 points) Calculate OLSPREAD (Operating Liability Spread) for 2019. 17.82% 9.76% 14.67% 12.58%

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