Selected information taken from the 20X2 annual report of Aardvark Company follows. During 20X2, the company had no nonoperating or nonrecurring items included in income and had no outstanding preferred stock.

($ in millions)	20X2				20X1
Sales	$	19,903			$	18,781
Interest expense		130				169
Net income		1,153				1,088
Total assets		12,673				12,461
Dividends		(153	)			(131	)
Total stockholders’ equity	$	4,288			$	4,007
Assumed tax rate		35	%			35	%
Industry ROA		7.32	%
Industry operating profit margin		6.1	%

Required:

a. For 20X2, calculate: ROA, ROCE, operating profit margin, and asset turnover. Round your percentage answers to one decimal place. For example, 0.1234 = 12.3%.

b. Based on the industry data provided, does Aardvark appear to have a competitive advantage (briefly explain your answer)? If so, what strategy is the firm apparently following?

Answer rating: 100% (QA)

Income statement for the year ended 20X2 Using back calculation method Details Sales revenue 19903 L... View the full answer