Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN: 9781337680059
Author: Gilbertson
Publisher: Cengage
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Computing Return on Equity and Return on Assets
The following table reports financial statement information for Meta (Facebook's parent company).
$ millions Total Assets Net Income Sales Equity
FY3
FY2
$482,890
$431,566
$60,320 $303,183 $326,854
$102,362 $306,615 $324,685
FY1
$414,222
$67,980 $223,509 $333,554
Required
a. Compute the following ratios for the two most recent years. NOTE: Round any intermediate calculations to the nearest whole dollar amount.
Ratios
Numerator Denominator
Return on equity (ROE)
Result
FY3
FY2
Return on assets (ROA)
FY3
FY2
Profit margin (PM)
FY3
FY2
Asset turnover (AT)
FY3
FY2
$
$
96
96
$
$
96
96
$
$
96
96
b. Which of the following best explains the change in ROA during FY3?
Check
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Transcribed Image Text:Computing Return on Equity and Return on Assets The following table reports financial statement information for Meta (Facebook's parent company). $ millions Total Assets Net Income Sales Equity FY3 FY2 $482,890 $431,566 $60,320 $303,183 $326,854 $102,362 $306,615 $324,685 FY1 $414,222 $67,980 $223,509 $333,554 Required a. Compute the following ratios for the two most recent years. NOTE: Round any intermediate calculations to the nearest whole dollar amount. Ratios Numerator Denominator Return on equity (ROE) Result FY3 FY2 Return on assets (ROA) FY3 FY2 Profit margin (PM) FY3 FY2 Asset turnover (AT) FY3 FY2 $ $ 96 96 $ $ 96 96 $ $ 96 96 b. Which of the following best explains the change in ROA during FY3? Check
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