Question: Computing, Analyzing, and Interpreting Return on Equity and Return on Assets Following are summary financial statement data for Nordstrom Inc. for fiscal years ended 2017

Computing, Analyzing, and Interpreting Return on Equity and Return on Assets Following are summary financial statement data for Nordstrom Inc. for fiscal years ended 2017 through 2019. $ thousands 2019 2018 2017 Sales $16,494 $16,097 $15,347 Net income 649 503 407 Total assets Equity 8,359 8,602 8,329 908 1,016 905 a. Compute the return on assets (ROA) for fiscal years ended 2019 and 2018. Round answers to one decimal place (ex: 0.2345 = 23.5%). 2019 0% 2018 0% b. Compute the profit margin (PM) for fiscal years ended 2019 and 2018. Round answers to one decimal place (ex: 0.2345 = 23.5%). 2019 0% 2018 0% c. Compute the asset turnover (AT) for fiscal years ended 2019 and 2018. Round answers to two decimal places. 2019 2018 d. Which component of ROA (profit margin or asset turnover or both) drives the change in ROA in fiscal year ended 2019? e. Compute the return on equity (ROE) for fiscal years ended 2019 and 2018. Round answers to one decimal place (ex: 0.2345 = 23.5%). 2019 0% 2018 0% f. Nordstrom has a large negative balance in retained earnings (a retained deficit). How does this affect the company's ROE: does it increase it or decrease it? Check

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