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Using the following information taken from the hypothetical 2011 balance sheet and 2010 income statement for Loblaw Companies Ltd., develop a strategic profit model. (Figures

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Using the following information taken from the hypothetical 2011 balance sheet and 2010 income statement for Loblaw Companies Ltd., develop a strategic profit model. (Figures are in S000.) Net sales Cost of goods sold Operating expenses Interest expenses Inventory Accounts receivable Other current assets Total Assets $31,250 23,894 5,972 0 2,025 2,568 6.462 17,428 Loblaw Companies Ltd 2011 (5000) 31,250 23,894 Nel Sales Less Cost of Goods Sold Gross Margin Less Operating Expenses Loss Interest Expenses Total Expenses 5,972 5,972 Net Profit Net Profit Margin = Net Profil / Net Sales 2,025 Inventory Add Accounts Receivable 2.568 Sales 2,025 Inventory Add Accounts Receivable Add. Other Current Assets Total Current Assets Add: Fixed Assets Total Assets 2,568 6,462 9.030 17,428 Asset Turnover = Net Sales/Total Assets Return on Assets (ROA) = Net Profit Margin Percentage Asset Turnover

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