The following condensed balance sheets were prepared for VF Ltd (in millions of dollars). Balance Sheets...
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The following condensed balance sheets were prepared for VF Ltd (in millions of dollars). Balance Sheets 2019 2018 2017 Operating Assets 310 285 250 Financial Assets 40 20 85 350 305 335 Sales Operating expenses (including taxes) Operating income Net financial income (expense) after tax Comprehensive income a) The income statements for 2019 and 2018 are as follows (in millions of dollars): b) c) d) Calculate: Operating Liabilities Financial Liabilities Common Equity (1) (ii) 2019 500 475 25 ង AI 2019 2018 2017 35 50 25 140 120 160 350 45 150 265 305 335 2018 450 432 18 2 20 Return on beginning common equity (ROE) for 2018 and 2019 Return on beginning net operating assets (RNOA) for 2018 and 2019 Explain what determined the change in RNOA from 2018 to 2019 Calculate financial leverage for each year 2017 to 2019 Explain why the change in ROE from 2018 to 2019 is considerably greater than the change in RNOA. The following condensed balance sheets were prepared for VF Ltd (in millions of dollars). Balance Sheets 2019 2018 2017 Operating Assets 310 285 250 Financial Assets 40 20 85 350 305 335 Sales Operating expenses (including taxes) Operating income Net financial income (expense) after tax Comprehensive income a) The income statements for 2019 and 2018 are as follows (in millions of dollars): b) c) d) Calculate: Operating Liabilities Financial Liabilities Common Equity (1) (ii) 2019 500 475 25 ង AI 2019 2018 2017 35 50 25 140 120 160 350 45 150 265 305 335 2018 450 432 18 2 20 Return on beginning common equity (ROE) for 2018 and 2019 Return on beginning net operating assets (RNOA) for 2018 and 2019 Explain what determined the change in RNOA from 2018 to 2019 Calculate financial leverage for each year 2017 to 2019 Explain why the change in ROE from 2018 to 2019 is considerably greater than the change in RNOA.
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SOLUTION a 1 Return on beginning common equity ROE for 2018 and 2019 ROE Net Income Beginning Common Equity For 2018 Net Income Comprehensive Income N... View the full answer
Related Book For
Auditing The Art And Science Of Assurance Engagements
ISBN: 9780136692089
15th Canadian Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones
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