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2014 and 2013. For simplicity, use year-end balances in your ratio computations. (4 pts)Ratio20142013ROE24.2%19.9%Profit Margin10.3%9.4%Asset Turnover9.6%9.3%Financial Leverage14.3%11.2%(b) Has the Company’s ROEincreased or decreasedin 2014? Which component(s) of the ROEdecomposition support or contribute to that directional change in the Company’s ROE?It has increased. The profit margin, asset turnover, and financial leverage all increased.(c) Select ONE of the three components of the ROE decomposition and explain what most likelylead to the observed change in that component. (HINT: Explanations for two of the threecomponents are more readily identifiable from the financial statements. You only need to identifyONE of those.)Profit margin was up due to increased net sales.Part II: Press Release and 10-Q for 2015-Q2
2. Are the Company’s quarterly financial statements audited by independent CPAs? How do you know?3. What periods are being reported on the Company’s interim income statements? Refer to specific months and years.May 31 2015, May 31 2014, November 30 20144. (a) What level of growth does the Company expect for its Net Sales for the fiscal year 2015?