Using data from the Statement of Earnings and Balance Sheet of Campbell Soup Company. (See pages 40 and 42. The PDF in the link may not be accessible.)

Required:

1. Calculate ROI for 2020.
2. Calculate ROE for 2020.
3. Calculate working capital at August 2, 2020, and July 28, 2019.
4. Calculate current ratio at August 2, 2020, and July 28, 2019.
5. Calculate Acid-test ratio at August 2, 2020, and July 28, 2019.

PG 40:

PG 42:

Pension plan assets are categorized based on the following fair value hierarchy: - Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. - Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. - Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability. recent trade data for identical or similar obligations. Other investments valued based upon net asset value are included as a reconciling item to the fair value table. Equities - Common stocks and preferred stocks are classified as Level 1 and are valued using quoted market prices in active markets. Corporate bonds - These investments are valued based on quoted market prices, yield curves and pricing models using current market rates. Government and agency bonds - These investments are generally valued based on bid quotations and recent trade data for identical or similar obligations. Municipal bonds - These investments are valued based on quoted market prices, yield curves and pricing models using current market rates. Mortgage and asset backed securities - These investments are valued based on prices obtained from third party pricing sources. The prices from third party pricing sources may be based on bid quotes from dealers and recent trade data. Mortgage backed securities are traded in the over-the-counter market. Real estate - Real estate investments consist of real estate investment trusts, property funds and limited partnerships. Real estate investment trusts are classified as Level 1 and are valued based on quoted market prices. Property funds are classified as either Level 2 or Level 3 depending upon whether liquidity is limited or there are few observable market participant transactions. Property funds are valued based on third party appraisals. Limited partnerships are valued based upon valuations provided by the general partners of the funds. The values of limited partnerships are based upon an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sales transactions with third parties, expected cash flows, and market-based information, including comparable transactions and performance multiples among other factors. The investments are classified as Level 3 since the valuation is determined using unobservable inputs. Real estate investments valued at net asset value are included as a reconciling item to the fair value table. Hedge funds - Hedge fund investments include hedge funds valued based upon a net asset value derived from the fair value of underlying securities. Hedge fund investments that are subject to liquidity restrictions or that are based on unobservable inputs are classified as Level 3. Hedge fund investments may include long and short positions in equity and fixed income securities, derivative instruments such as futures and options, commodities and other types of securities. Hedge fund investments valued at net asset value are included as a reconciling item to the fair value table. Derivatives - Derivative financial instruments include forward currency contracts, futures contracts, options contracts, interest rate swaps and credit default swaps. Derivative financial instruments are classified as Level 2 and are valued based on observable market transactions or prices. Commingled funds - Investments in commingled funds are not traded in active markets. Blended commingled funds are invested in both equities and fixed income securities. Commingled funds are valued based on the net asset values of such funds and are included as a reconciling item to the fair value table. Other items to reconcile to fair value of plan assets included amounts due for securities sold, amounts payable for securities purchased, and other payables. The following table summarizes the changes in fair value of Level 3 investments for the years ended August 2, 2020, and July 28,2019 : Short-term imvestments - Investments include cash and cash equivalents, and various short-term debt instruments and short-term investment funds. Institutional short-term investment vehicles valued daily are classified as Level 1 at cost which approximates market value. Short-term debt instruments are classified at Level 2 and are valued based on bid quotations and Complete this question by entering your answers in the tabs below. a. Calculate ROI for 2020. Note: Do not round intermediate calculations. Round your answer to 1 decimal place. b. Calculate ROE for 2020 . Note: Round your answer to 1 decimal place. Complete this question by entering your answers in the tabs below. c. Calculate working capital at August 2, 2020, and July 28, 2019. Note: Enter your answer in millions. Negative value should be indicated by a minus sign. d. Calculate current ratio at August 2, 2020, and July 28, 2019. Note: Round your answers to 2 decimal places. e. Calculate Acid-test ratio at August 2, 2020, and July 28, 2019. Note: Round your answers to 2 decimal places. Supplemental cash flow and other information related to leases was as follows: The following is a reconciliation of the effective income tax rate on continuing operations to the U.S. federal statutory income tax rate: 13. Taxes on Earnings The provision for income taxes on earnings from continuing operations consists of the following: of the (1) The Tax Cuts and Jobs Act of 2017 (the Act) was enacted into law on December 22, 2017, and made significant changes to corporate taxation. Changes under the Act included: - Reducing the federal corporate tax rate from 35% to 21% effective January 1, 2018. A blended rate applied for fiscal 2018 non-calendar year end companies for the fiscal periods that included the effective date of the rate change. The impact of this is shown as "Effect of higher U.S. federal statutory tax rate;" - Repealing the exception for deductibility of performance-based compensation to covered employees, which impacted us beginning in 2019, along with expanding the number of covered employees; - Transitioning to a territorial system for taxation on foreign earnings along with the imposition of a transition tax in 2018 on the deemed repatriation of unremitted foreign earnings; - Immediate expensing of machinery and equipment placed into service after September 27, 2017; - Eliminating the deduction for domestic manufacturing activities, which impacted us beginning in 2019; - Changes to the taxation of multinational companies, including a new minimum tax on Global Intangible Low-Taxed Income, a new Base Erosion Anti-Abuse Tax, and a new U.S. corporate deduction for Foreign-Derived Intangible Income, all of which were effective for us beginning in 2019; and - Limiting the deductibility of interest expense to 30% of adjusted taxable income, which was effective for us beginning in 2019 . As a result of the Act, we recognized a benefit of $179 in 2018 on the remeasurement of deferred tax assets and liabilities and expenses of \$2 in 2019 and \$53 in 2018 on the transition tax on unremitted foreign earnings. Pension plan assets are categorized based on the following fair value hierarchy: - Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. - Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. - Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability. recent trade data for identical or similar obligations. Other investments valued based upon net asset value are included as a reconciling item to the fair value table. Equities - Common stocks and preferred stocks are classified as Level 1 and are valued using quoted market prices in active markets. Corporate bonds - These investments are valued based on quoted market prices, yield curves and pricing models using current market rates. Government and agency bonds - These investments are generally valued based on bid quotations and recent trade data for identical or similar obligations. Municipal bonds - These investments are valued based on quoted market prices, yield curves and pricing models using current market rates. Mortgage and asset backed securities - These investments are valued based on prices obtained from third party pricing sources. The prices from third party pricing sources may be based on bid quotes from dealers and recent trade data. Mortgage backed securities are traded in the over-the-counter market. Real estate - Real estate investments consist of real estate investment trusts, property funds and limited partnerships. Real estate investment trusts are classified as Level 1 and are valued based on quoted market prices. Property funds are classified as either Level 2 or Level 3 depending upon whether liquidity is limited or there are few observable market participant transactions. Property funds are valued based on third party appraisals. Limited partnerships are valued based upon valuations provided by the general partners of the funds. The values of limited partnerships are based upon an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sales transactions with third parties, expected cash flows, and market-based information, including comparable transactions and performance multiples among other factors. The investments are classified as Level 3 since the valuation is determined using unobservable inputs. Real estate investments valued at net asset value are included as a reconciling item to the fair value table. Hedge funds - Hedge fund investments include hedge funds valued based upon a net asset value derived from the fair value of underlying securities. Hedge fund investments that are subject to liquidity restrictions or that are based on unobservable inputs are classified as Level 3. Hedge fund investments may include long and short positions in equity and fixed income securities, derivative instruments such as futures and options, commodities and other types of securities. Hedge fund investments valued at net asset value are included as a reconciling item to the fair value table. Derivatives - Derivative financial instruments include forward currency contracts, futures contracts, options contracts, interest rate swaps and credit default swaps. Derivative financial instruments are classified as Level 2 and are valued based on observable market transactions or prices. Commingled funds - Investments in commingled funds are not traded in active markets. Blended commingled funds are invested in both equities and fixed income securities. Commingled funds are valued based on the net asset values of such funds and are included as a reconciling item to the fair value table. Other items to reconcile to fair value of plan assets included amounts due for securities sold, amounts payable for securities purchased, and other payables. The following table summarizes the changes in fair value of Level 3 investments for the years ended August 2, 2020, and July 28,2019 : Short-term imvestments - Investments include cash and cash equivalents, and various short-term debt instruments and short-term investment funds. Institutional short-term investment vehicles valued daily are classified as Level 1 at cost which approximates market value. Short-term debt instruments are classified at Level 2 and are valued based on bid quotations and Complete this question by entering your answers in the tabs below. a. Calculate ROI for 2020. Note: Do not round intermediate calculations. Round your answer to 1 decimal place. b. Calculate ROE for 2020 . Note: Round your answer to 1 decimal place. Complete this question by entering your answers in the tabs below. c. Calculate working capital at August 2, 2020, and July 28, 2019. Note: Enter your answer in millions. Negative value should be indicated by a minus sign. d. Calculate current ratio at August 2, 2020, and July 28, 2019. Note: Round your answers to 2 decimal places. e. Calculate Acid-test ratio at August 2, 2020, and July 28, 2019. Note: Round your answers to 2 decimal places. Supplemental cash flow and other information related to leases was as follows: The following is a reconciliation of the effective income tax rate on continuing operations to the U.S. federal statutory income tax rate: 13. Taxes on Earnings The provision for income taxes on earnings from continuing operations consists of the following: of the (1) The Tax Cuts and Jobs Act of 2017 (the Act) was enacted into law on December 22, 2017, and made significant changes to corporate taxation. Changes under the Act included: - Reducing the federal corporate tax rate from 35% to 21% effective January 1, 2018. A blended rate applied for fiscal 2018 non-calendar year end companies for the fiscal periods that included the effective date of the rate change. The impact of this is shown as "Effect of higher U.S. federal statutory tax rate;" - Repealing the exception for deductibility of performance-based compensation to covered employees, which impacted us beginning in 2019, along with expanding the number of covered employees; - Transitioning to a territorial system for taxation on foreign earnings along with the imposition of a transition tax in 2018 on the deemed repatriation of unremitted foreign earnings; - Immediate expensing of machinery and equipment placed into service after September 27, 2017; - Eliminating the deduction for domestic manufacturing activities, which impacted us beginning in 2019; - Changes to the taxation of multinational companies, including a new minimum tax on Global Intangible Low-Taxed Income, a new Base Erosion Anti-Abuse Tax, and a new U.S. corporate deduction for Foreign-Derived Intangible Income, all of which were effective for us beginning in 2019; and - Limiting the deductibility of interest expense to 30% of adjusted taxable income, which was effective for us beginning in 2019 . As a result of the Act, we recognized a benefit of $179 in 2018 on the remeasurement of deferred tax assets and liabilities and expenses of \$2 in 2019 and \$53 in 2018 on the transition tax on unremitted foreign earnings