[SOLVED] A company is ROA is much lower than RNOA, what cause this difference?
Im studying for my Accounting class and need an explanation.
1. A company in 2019 Return on Assets (ROA) is 17.82% and its Return on Net Operating Assets (RNOA) is 50.9%. Briefly discuss what could be driving the difference in these two ratios?
please be logical
2.Which of the following is not a correct statement about the reformulation of the financial statements?
b. The focus of the reformulation is on the common shareholders; thus, activities with non-controlling interests and/or preferred shareholders need to be re-classified.
d. The classification between short-term and long-term determines whether the item is an operating or financing activity.
3.what is the purpose of reformulating the financial statements? (just several sentences enough)
4.Which category would the line item Net Interest Expense (Income) be included in as part of the reformulated financial statements?
d. Net Financial Assets – NFA or (Net Financial Liabilities NFL
Which of the following would not be a driver (part of) the calculation for RNOA (Return on Net Operating Assets?
d. Cost of Goods Sold
Which of the following would not be a driver (part of) the calculation for ROCE (Return on Common Shareholders Equity)?