Selected Information Taken from the 2014 Annual Report of Aardvark

question 19

Essay

Selected information taken from the 2014 annual report of Aardvark Company follows.During 2014,the company had no nonoperating or nonrecurring items included in income and had no outstanding preferred stock.
$\begin{array}{lrr}(\$ \text { in millions) } & \underline{\mathbf{2 0 1 4}} & \underline{\mathbf{2 0 1 3}} \\\text { Sales } & \$ 19,903 & \$ 18,781 \\\text { Interest expense } & 130 & 169 \\\text { Net income } & 1,153 & 1,088 \\\text { Total assets } & 12,673 & 12,461 \\\text { Dividends } & (153) & (131) \\\text { Total stockholders' equity } & \$ 4,288 & \$ 4,007 \\\text { Assumed tax rate } & 35 \% & 35 \% \\\text { Industry ROA } & 7.32 \% & \\\text { Industry operating profit margin } & 6.1 \% &\end{array}$
Required:
a.For 2014,calculate:ROA,ROCE,operating profit margin,and asset turnover.Round your percentage answers to one decimal place.For example,.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?

Recognize the value and applications of program evaluation in social reforms.

Understand how scientific research contributes to explanations and predictions in behavior.

Understand the concept and implications of price elasticity of demand.

Differentiate between short-run and long-run elasticity of supply.

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Definitions:

Financial Rewards

Monetary benefits provided to employees as compensation or incentive for their performance and contributions.

New Career Paradigm

A modern approach to careers focused on flexibility, self-direction, and continuous learning, differing from traditional career paths.

Discrete Exchange

A transaction between parties that is distinct and separate, with a clear start and endpoint.

Bureaucratic Administration

A system of management and administration characterized by hierarchical structure, fixed rules, and a clear division of labor.