Earlson Company included the following items in its financial statements for 2014, the current year (amounts in

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Earlson Company included the following items in its financial statements for 2014, the current year (amounts in millions):


Earlson Company included the following items in its financial statements


Requirements
1. Use DuPont Analysis to compute Earlson’s return on assets and return on common equity during 2014 (the current year). Earlson has no preferred stock outstanding.
2. Do the company’s rates of return look strong or weak? Give your reason.
3. What additional information do you need to make the decision in requirement2?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial Accounting

ISBN: 978-0133427530

10th edition

Authors: Walter Harrison, Charles Horngren, William Thomas

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