If someone would be able to check my homework for mistakes. You will see that I have answered some of the problems I just want to make sure I am headed in the right direct. Then for the second question I could use some guidance. Thank you

Selected balance sheet and income statement data follow for Staples, Inc. (in millions). Use the data to calculate a) return on net operating assets (RNOA), b) net operating profit margin (NOPM), and c) net operating asset turnover (NOAT) for fiscal 2015.

A.

2015 Revenues 2015 NOPAT 2015 Operating assets 2015 Operating liabilities 2014 Net operating assets

$18,764 $556 $8,337 $3,286 $5,796

Show your calculations below.

Net income = revenues - expenses

= 18,746 - 3,286

= $15460

a)RNOA = net income / net operating assets

= 15,460 / 5,796

=

b)NOPM = operating income / revenue

c)NOAT = net sales / net operating asset

= 18,764 / 5,796

= 3.24

A.Comment on the information provided to the managers of Staples. Indicate how this information is used.

A.Use the following selected balance sheet and income statement data for Mattel Inc. (in $ thousands) to compute a) return on equity, b) profit margin (PM), c) asset turnover (AT), and d) financial leverage (FL) for fiscal 2016.Show that ROE = PM AT FL.

(in tousands)

2016 2015

Net sales $5,456,650 $5,702,613

Operating income 619,233 640,922

Interest expense 95,118 85,270

Net income 318,022 369,416

Total assets 6,493,794 6,535,143

Total liabilities 4,086,012 3,901,889

Show your calculations below.

2016 Stockholders equity = total assets - total liability

= 6,493,794 - 4,086,012

=2,407,782

2015 Stockholders equity = total assets - total liability

= 6,535,143 - 3,901,889

= 2,633,254

a)ROE = net income/ Average Stock holders equity

= 328,022 / ((2,407,782 + 2,633,254) /2

= 328,022 / (2,520,518)

= 0.13014

= 13.01%

b)PM = Net Income /Sales

= 318,022 / 5,456,650

= 0.058

= 5.83%

a)AT = Sales / Average total assets

= 5,456,650 / ((6,493,794 + 6,535,143) /2 )

= 5,456,650 / 6,514,468.5

= 0.83762

= 83.76%

b)FL = total debt / shareholders equity

=4,086,012 / 2,407,782

= 1.697

e) ROE = PM AT FL

13.01% = 5.83% x 83.76% x 1.697

A.Comment on the information provided to the managers of Mattel, Inc. Indicate how this information is used.

Again thank you for taking the time to help!