Selected Information Taken from the 2014 Annual Report of Aardvark

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?