FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:This exercise is built around Kroger's financial statements from the chapter. Total shareholders' equity-The Kroger Co. was
$5,384 million at February 1, 2014. Refer to Exhibits.61. 6.6 and 6.14 from the chapter.
Required:
1. Kroger earned an ROA of 6.9% in fiscal 2014. What was ROCE that year? (Round your answer to 1 decimal place.)
2. ROA at the company fell to 3.7% in fiscal 2017 (adjusted to eliminate the one-time effect on earnings of the Tax Cuts and
Jobs Act). What was ROCE that year (also adjusted for the Tax Cuts and Jobs Act)? (Round your answer to 1 decimal place.)
3. Did financial leverage help or hurt Kroger in fiscal 2017?
1. ROCE 2014
2. ROCE 2017
3. Did financial leverage help or hurt Kroger in fiscal 2017?
Help
14.8 %
32.0%
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