Compute and Interpret Measures for DuPont Disaggregation AnalysisUse the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder).2014($millions)SalesNet income, consolidatedNet income attributable to 3M shareholdersAssetsTotal equityEquity attributable to 3M shareholdersa. Compute return on equity (ROE).Round answer to two decimal places (ex: 0.12345= 12.35%)%2015$30,6745,0565,04832,898 $31,38911,747 13,14211,708 13,109b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage.• Round profit margin to two decimal places (ex: 0.12345= 12.35%)• Round asset turnover and financial leverage to three decimal places.Profit marginAsset turnover%Financial leveragec. Compute ROA.Round answer to two decimal places (ex: 0.12345= 12.35%)ROA%d. Compute adjusted ROA (assume a statutory tax rate of 37% and pretax net interest expense of $123).Round answer to two decimal places (ex: 0.12345= 12.35%)%

Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). 2014 ($millions) Sales Net income, consolidated Net income attributable to 3M shareholders Assets Total equity Equity attributable to 3M shareholders a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345= 12.35%) Profit margin b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. • Round profit margin to two decimal places (ex: 0.12345 = 12.35%) • Round asset turnover and financial leverage to three decimal places. 2015 $30,674 5,056 5,048 32,898 $31,389 11,747 13,142 11,708 13,109 Asset turnover 96 Financial leverage c. Compute ROA. Round answer to two decimal places (ex: 0.12345 = 12.35%) ROA 96

Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). 2014 ($millions) Sales Net income, consolidated Net income attributable to 3M shareholders Assets Total equity Equity attributable to 3M shareholders a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345= 12.35%) Profit margin b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. • Round profit margin to two decimal places (ex: 0.12345 = 12.35%) • Round asset turnover and financial leverage to three decimal places. 2015 $30,674 5,056 5,048 32,898 $31,389 11,747 13,142 11,708 13,109 Asset turnover 96 Financial leverage c. Compute ROA. Round answer to two decimal places (ex: 0.12345 = 12.35%) ROA 96

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 63P: Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture...

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Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the companys financial statements for the 2 most recent years. Required: Note: Round all answers to two decimal places. 1. Compute the following for each year: (a) return on assets, (b) return on stockholders equity, (c) earnings per share, (d) price-earnings ratio, (e) dividend yield, and (f ) dividend payout ratio. 2. CONCEPTUAL CONNECTION Based on the analysis in Requirement 1, would you invest in the common stock of Kepler?
ACCOUNTING Carry out the following practical case: The company “Inversiones San Remo SAC”, with RUC: 20234125239, began activities in 2005, is dedicated to the manufacture of curtains, operates in its own premises located in La Victoria, has 33 employees (monthly average), and According to the General Shareholders' Meeting, in 2018 they calculated the dividend distribution of 40%. They request to assemble the Financial Statements with the following information: Prepare the Statement of Financial Position 2017 and 2018. Notes to the Financial Statements: Selling expenses correspond to depreciation expenses for 2018. Administrative expenses corresponding to payroll expenses (salaries) for the 2018 financial year. Financial income corresponds to earnings from the profitability of cash surpluses that the company had in the 2018 period. Financial expenses for the 2018 period correspond to interest paid on working capital loans. Make all the discounts by law that you consider for…
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