User Account

All Pages

Discuss differences observed with respect to pm and at

Assignment Help Financial Accounting
Reference no: EM132499818

Question 1: Compute ROA, Profit Margin and Asset Turnover for Competitors

Selected balance sheet and income statement information from Urban Outfitters, Inc. and TJX Companies, clothing retailers in the high-end and value-priced segments, respectively, follows.

Company ($ millions)

2017

Sales

2017 Earnings

Without Interest

Expense (EWI)

2017 Total

Assets

2016 Total

Assets

Urban Outfitters . . . . . . . . . . . . . . . . . . $ 3,616 $ 108 $ 1,953 $ 1,903

TJX Companies . . . . . . . . . . . . . . . . . . 35,865 2,653 14,058 12,884

Question 1 a. Compute the 2017 return on assets (ROA) for both companies.

Question 1 b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. Confirm that ROA = PM × AT.

Question 1 c. Discuss differences observed with respect to PM and AT and interpret these differences in light of each company's business model.

Reference no: EM132499818

Questions Cloud

Discussion about the religion and spirituality : Religion and spirituality are complex constructs that have the capacity to influence patients' illnesses, courses of treatment, and experiences.
Quantity of soda pop sold sensitive : We observe that when the price of soda pop rises by 10% the quantity demanded falls by 15%.
What reverse engineer expectation implied by guess pb ratio : 14% earnings growth rate for the industry over the next five years. Using this information, reverse engineer the expectations implied by Guess's PB ratio.
Define how many people will participate in the study : Will you collect data from an entire population or a sample of that population? Approximately how many people will participate in this study?
Discuss differences observed with respect to pm and at : Discuss differences observed with respect to PM and AT and interpret these differences in light of each company's business model.
What is a generative moment : What is a generative moment? How do these occur in a coaching session? How does God use these types of moments in our own lives to change us?
What are the nominal and effective costs of trade credit : What are the nominal and effective costs of trade credit under the credit terms of 4/10, net 40? Assume a 365-day year. Do not round intermediate
Find the present value of the annual savings created : Blake Company, Find the present value of the annual savings created by this decision. Find the value added to the company by this procedure.
Shift the demand for labor : Give two examples of events/variables that could shift the demand for labor, and explain why they could shift it.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Warranty expense accrued for financial reporting purposes

The tax rate enacted for 2015 and future years is 40%. Differences between the 2015 income statement and tax return are listed below. Warranty expense accrued for financial reporting purposes amounts to $5,000. Warranty deductions per the tax return ..

  Prepare a statement of cash flows for the first year

Prepare a statement of cash flows for the first year, using the direct method in the operating activities section and Did the company generate more or less cash flow from operations than it earned in net income

  Classify the deductible losses as deductions for or from agi

What is the amount of Betsy's deductible losses. Classify the deductible losses as deductions for or from AGI.

  What is the amount and character of the distribution to jody

Vebos, Inc. distributes, Jody. Vebos had current E&P of $100,000 at the distribution. What is the amount and character of the distribution to Jody?

  Market price of sandals common stock

On June 30, the board of directors of Sandals, Inc., declares a 100% stock dividend on its 30,000, $1 par, common shares. The market price of Sandals common stock is $35 on June 30. Record the stock dividend. (If no entry is required for a transactio..

  What is the primary emphasis

Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis

  How is expense best treated on his current year tax return

During the current year Clifton, a corporate CEO, took a two-week seminar at the National Strategy Association on strategic planning in order to improve his strategic planning skills. The tuition and fees totaled $14,000, which he paid out-of-pocket ..

  Evaluate the direct materials price and efficiency variances

Evaluate the direct materials price and efficiency variances for the year and evaluate the direct labor price and efficiency variances for the year and determine the efficiency variances and variable overhead spending for the year

  Cost of goods sold using the fifo periodic inventory method

Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Marzion Electronics' year-end.

  How much suspended loss can be taken on mr mapp final

John Mapp dies with passive activity property having an adjusted basis of $50,000, suspended losses of $20,000, and a fair market value at the date of Mr. Mapp's death of $77,000. How much suspended loss can be taken on Mr. Mapp's final Form 1040..

  Explain the basic components of cost-volume-profit

Explain the basic components of cost-volume-profit (CVP) analysis. Why is it important to determine a company's break-even point?

  Prepare summary journal entries related to the sale

At the beginning of 2012, EZ Tech Company’s Accounts Receivable balance was $140,000, and the balance in Allowance for Doubtful Accounts was $2,350 (Cr.). EZ Tech’s sales in 2012 were $1,050,000, 80% of which were on credit.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd