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

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. $ millions Sales.... Net income Total assets Equity. 2019 2018 2017 $15,860 $15,478 $14,757 564 437 354 7,886 873 8,115 977 7,858 870 Required a. Compute the return on assets (ROA) for fiscal years ended 2019 and 2018. b. Compute the profit margin (PM) for fiscal years ended 2019 and 2018. c. Compute the asset turnover (AT) for fiscal years ended 2019 and 2018. d. Which component of ROA (profit margin or asset turnover or both) drives the change in ROA in 2018? e. Compute the return on equity (ROE) for fiscal years ended 2019 and 2018. 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?

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