Selected balance sheet and income statement information for Home Depot follows. $...

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Accounting

Selected balance sheet and income statement information for Home Depot follows.

$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,333 $38,223
Nonoperating assets 2,216 1,723
Total assets 42,549 39,946
Operating liabilities 14,918 13,427
Nonoperating liabilities 21,315 17,197
Total liabilities 36,233 30,624
Total stockholders' equity 6,316 9,322
Sales 88,519
Net operating profit before tax (NOPBT) 11,774
Nonoperting expense before tax 753
Tax expense 4,012
Net income 7,009

Round answers to two decimal places (ex: 0.12345 = 12.35%)

a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage. ROE: Answer% ROA: Answer% Financial leverage: Answer

b. Disaggregate ROA in to profitability and productivity components. Profit margin Answer% Asset turnover Answer

Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder.

$ millions May 31, 2015 May 31, 2014
Operating assets $56,535 $51,447
Nonoperating assets 54,368 38,819
Total assets 110,903 90,266
Operating liabilities 19,847 18,722
Nonoperating liabilities 41,958 24,097
Total liabilities 61,805 42,819
Total Oracle stockholders' equity 48,663 46,878
Total revenues 38,226
Operating income before tax 13,871
Nonoperting expense before tax 1,037
Tax expense 2,896
Net income 9,938

a. Compute return on equity (ROE) Round answer to two decimal places (ex: 0.12345 = 12.35%) ROE Answer% b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL). Rouand answers to two decimal places (percentage ex: 0.12345 = 12.35%) ROA Answer% FL Answer c. Calculate the profitability and productivity components of ROA. Rouand answers to two decimal places (percentage ex: 0.12345 = 12.35%) PM Answer% AT Answer

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