Compute ROA, Profit Margin, and Asset Turnover \begin{tabular}{|l|r|} \hline \multicolumn{1}{|c|}{TargetCorporationIncomeStatement} & Fiscalyearended \\ \hline \multicolumn{1}{|l|}{...
50.1K
Verified Solution
Question
Accounting
Compute ROA, Profit Margin, and Asset Turnover \begin{tabular}{|l|r|} \hline \multicolumn{1}{|c|}{TargetCorporationIncomeStatement} & Fiscalyearended \\ \hline \multicolumn{1}{|l|}{ (\$ millions) } & January 31,2015 \\ \hline & $72,618 \\ \hline Sales revenue & 51,278 \\ \hline Cost of sales & 14,676 \\ \hline Selling, general and administrative expenses & 2,129 \\ \hline Depreciation and amortization & 4,535 \\ \hline Earnings from continuing operations before interest and income taxes & 882 \\ \hline Net interest expense & 3,653 \\ \hline Earnings from continuing operations before income taxes & 1,204 \\ \hline Provision for income taxes & 2,449 \\ \hline Net earnings from continuing operations & (4,085) \\ \hline Discontinued operations, net of tax & $(1,636) \\ \hline Net earnings (loss) & \\ \hline \end{tabular} a. Compute its return on assets (ROA) for the fiscal year ending January 31, 2015. Compute ROA using net earnings (loss). Assume a statutory tax rate of 35%. Round your answer to one decimal place. Use negative sign with answer, if appropriate. Return on Assets =% b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Round your answers to one decimal place. Use negative sign with answers, if appropriate. Profit Margin =% Asset Turnover =



Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.