Selected information for Metro Inc. for the most recent three years is as follows (dollar amounts are in millions):

Instructions
(a) What event most likely caused the high amount of profitability in 2013?
(b) What was the main driver of the company's return on assets over these three years? Explain.
(c) What was the main driver of the company's return on common shareholders' equity over these three years? Explain.

Net income Assets, beginning of year Assets, end of year Sales Return on common shareholders' equity Return on assets Debt to total assets Asset turnover Profit margin 2015 20142013 $506 $447 $712 $5,280 $5,064 $5,155 $5,387$5,280 $5,064 $12,224 $11,590 $11,403 16.3% 9.5% 8.6% 13.9% 50.9% 49.5% 44.7% 2.3 times 2.2 times 2.2 times 4.1% 3.9% 6.2% 19.1% 26.7% |