Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Students have asked these similar questions
Z Company provided the following information pertaining to operating segments for
the year ended December 31, 2020:
Total revenue: P 80,000,000
Sales to internal customers included in total revenue: P 50,000,000
External revenue reported by reportable operating segments must be at least what
amount?
For fiscal year 2018, Walmart Inc. (WMT) had total revenues of $500.34 billion, net income of $9.86 billion, total
assets of $204.52 billion, and total shareholders' equity of $77.87 billion.
a. Calculate Walmart's ROE directly, and using the DuPont Identity.
b. Comparing with the data for Costco, use the DuPont Identity to understand the difference between the
two firms' ROES.
Data table
For fiscal year 2018, Costco Wholesale Corporation (COST) had a net profit margin of 2.08%, asset
turnover of 3.55, and a book equity multiplier of 3.37. Costco's ROE (DuPont) is 24.88%.
Computing and Interpreting Financial Statement Ratios
Following are selected ratios of Norfolk Southern for 2018 and 2017.
Return on Assets (ROA) Component
2018
2017
Profitability (Net income/Sales)
25.3%
53.2%
Productivity (Sales/Average assets)
0.338
0.319
a. Was the company profitable in 2018?Answer
b. Was the company more profitable in 2018 or 2017?Answer
c. Is the change in productivity a positive or negative development?Answer
d. Compute the company’s ROA for 2018 and for 2017.
Note: Round answers to one decimal places (example: 10.4%).
ROA
2018
Answer
2017
Answer
e. From the information provided, which of the following best explains the change in ROA during 2018?
Answer
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