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Required: Construct the Du Pont identity for LVMH Moet Hennessy Louis Vuitton SA. (Do not use rounding during any step in the problem. Round your answer to 2 decimal places (e.g., 32.16).)     ROE for 2016 ?

Required: Construct the Du Pont identity for LVMH Moet Hennessy Louis Vuitton SA. (Do not use rounding during any step in the problem. Round your answer to 2 decimal places (e.g., 32.16).)     ROE for 2016 ?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Construct the Du Pont identity for LVMH Moet Hennessy Louis Vuitton SA. (Do not use rounding during any step in the problem. Round your answer to 2 decimal places (e.g., 32.16).)
   
ROE for 2016 ?
Statements of Financial Position LVMH Moet Hennessy Louis Vuitton Dec 16 Dec 15 Dec 16 Dec 15 €m €m €m €m Current Assets Current Liabilities Cash and Short-Term Investments Trade Payables 2,292 1,013 1,559 2,095 Trade Receivables 1,650 1,595 Accrued Expenses 1,866 1,552 Notes Payable/Short- Term Debt Receivables - Other 229 151 1,571 2,212 Current Port. of LT Total Inventory 5,767 4,812 Debt/Capital Leases 276 926 Other Current Assets 1,695 2,001 Other Current liabilities 610 628 Total Current Assets Total Current Liabilities 10,354 10,118 6,615 7,413 Non-Current Assets Non-Current Liabilities Property/Plant/Equipment 6,081 5,419 Total Long-Term Debt 3,738 2,477 Goodwill, Net 4,423 4,818 Deferred Income Tax 3,113 2,843 Intangibles, Net 8,523 7,999 Minority Interest 989 938 Long Term Investments 591 952 Other Liabilities 4,224 5,123 Other Long-Term Assets 1,511 1,078 Total Non-Current Liabilities 12,064 11,381 Total Non-Current Assets Total Liabilities 21,129 20,266 18,679 18,794 Shareholders' Equity Ordinary Shares 147 147 Additional Paid-In Capital 1,737 1,736 Retained Earnings 11,192 (Accumulated Deficit) Treasury Stock - Common 12,274 -983 -877 Other Equity, Total -371 -608 Total Equity 12,804 11,590 Total Liabilities & Total Assets 31,483 30,384 Shareholders' Equity 31,483 30,384
Transcribed Image Text:Statements of Financial Position LVMH Moet Hennessy Louis Vuitton Dec 16 Dec 15 Dec 16 Dec 15 €m €m €m €m Current Assets Current Liabilities Cash and Short-Term Investments Trade Payables 2,292 1,013 1,559 2,095 Trade Receivables 1,650 1,595 Accrued Expenses 1,866 1,552 Notes Payable/Short- Term Debt Receivables - Other 229 151 1,571 2,212 Current Port. of LT Total Inventory 5,767 4,812 Debt/Capital Leases 276 926 Other Current Assets 1,695 2,001 Other Current liabilities 610 628 Total Current Assets Total Current Liabilities 10,354 10,118 6,615 7,413 Non-Current Assets Non-Current Liabilities Property/Plant/Equipment 6,081 5,419 Total Long-Term Debt 3,738 2,477 Goodwill, Net 4,423 4,818 Deferred Income Tax 3,113 2,843 Intangibles, Net 8,523 7,999 Minority Interest 989 938 Long Term Investments 591 952 Other Liabilities 4,224 5,123 Other Long-Term Assets 1,511 1,078 Total Non-Current Liabilities 12,064 11,381 Total Non-Current Assets Total Liabilities 21,129 20,266 18,679 18,794 Shareholders' Equity Ordinary Shares 147 147 Additional Paid-In Capital 1,737 1,736 Retained Earnings 11,192 (Accumulated Deficit) Treasury Stock - Common 12,274 -983 -877 Other Equity, Total -371 -608 Total Equity 12,804 11,590 Total Liabilities & Total Assets 31,483 30,384 Shareholders' Equity 31,483 30,384
Some recent financial statements for the luxury goods company LVMH Moet Hennessy Louis Vuitton SA follow. Income Statements for LVMH Moet Hennessy Louis Vuitton Y/E Y/E 2016 2015 €m €m Revenue 17,193 16,481 Cost Revenue 6,012 5,786 Gross Profit 11,181 10,695 Selling/General/Admin. Expenses 7,553 7,140 Amortization Unusual Expense (Income) 126 116 Other Operating Expenses, Total 17 4 Operating Profit Interest Expense 3,485 3,429 -255 -241 Interest/Invest Income 15 30 Other, Net -41 -41 Profit Before Taxes 3,204 3,177 Provision for Income Taxes 893 853 Profit After Taxes 2,311 2,324 Minority Interest Equity In Affiliates -292 -306 7 7 Profit Attributable to Shareholders 2,026 2,025
Transcribed Image Text:Some recent financial statements for the luxury goods company LVMH Moet Hennessy Louis Vuitton SA follow. Income Statements for LVMH Moet Hennessy Louis Vuitton Y/E Y/E 2016 2015 €m €m Revenue 17,193 16,481 Cost Revenue 6,012 5,786 Gross Profit 11,181 10,695 Selling/General/Admin. Expenses 7,553 7,140 Amortization Unusual Expense (Income) 126 116 Other Operating Expenses, Total 17 4 Operating Profit Interest Expense 3,485 3,429 -255 -241 Interest/Invest Income 15 30 Other, Net -41 -41 Profit Before Taxes 3,204 3,177 Provision for Income Taxes 893 853 Profit After Taxes 2,311 2,324 Minority Interest Equity In Affiliates -292 -306 7 7 Profit Attributable to Shareholders 2,026 2,025
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