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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
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 $000.) 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($000) 31,250 23,894 Net Sales Less: Cost of Goods Sold Gross Margin Less Operating Expenses Less Interest Expenses Total Expenses 5,972 0 5,972 Net Profit Net Profit Margin = Net Profit / Net 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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