D. H. Muller Company presented the following income statement in its 2009 annual report: The asset side
Question:
D. H. Muller Company presented the following income statement in its 2009 annual report:
The asset side of the balance sheet is summarized as follows:
Required
a. Based on these data, compute the following for 2009, 2008, and 2007:
1. Net profit margin
2. Return on assets (using total assets)
3. Total asset turnover (using total assets)
4. DuPont analysis
5. Operating income margin
6. Return on operating assets (using end-of-year operating assets)
7. Operating asset turnover (using end-of-year operating assets)
8. DuPont analysis with operating ratios
9. Gross profit margin
b. Discuss yourfindings.
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
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