Dorex, Inc., presented the following comparative income statements for 2009, 2008, and 2007: Required a. Calculate the
Question:
Required
a. Calculate the following for 2009, 2008, and 2007:
1. Net profit margin
2. Return on assets
3. Total asset turnover
4. DuPont analysis
5. Operating income margin
6. Return on operating assets
7. Operating asset turnover
8. DuPont analysis with operating ratios
9. Return on investment
10. Return on total equity
b. Based on the previous computations, summarize the trend in profitability for thisfirm.
For the Years Ended 2008 $1,600,000 $1,300,000 $1,200,000 1.321,500 For the Years Ended 2008 2009 2007 Net sales Other income 22,100 1,622,100 21,500 21,000 1,221,000 2009 2007 Costs and expenses: Material and manufacturing costs of products sold Research and development General and selling Interest Other 576,000 71,400 465,000 17,040 13,800 $1,463,000 $1,234,350 $1,143,240 740,000 90,000 600,000 19,000 14,000 624,000 78,000 500,500 18,200 13,650 For the Years Ended 2009 2008 2007 Earnings before income taxes and noncontrolling interest Provision for income taxes Earnings before noncontrolling interest Noncontrolling interest Net eamings $87,150 35,731 51,419 8,500 42,919 $77,760 32,659 45,101 8,100 37,001 $159,100 62,049 97,051 10,200 86,851 For the Years Ended 2009 2008 2007 Other relevant financial information: Average common shares issued Average long-tem debt Average stockholders' equity (all common) Average total assets Average operating assets 28,800 211,100 21,800 214,000 770,000 1,180,000 1,090,000 29,610 29,100 790,100 1,440,600 ,220,000 1,390,200 160,000 811,200
Step by Step Answer:
a 1 Net Profit Margin Net Income Before Minority Share of Earnings Equity Income and Nonrecurring Items Net Sales 2009 2008 2007 97051 51419 45101 1600000 1300000 1200000 607 396 376 2 Return on Asset...View the full answer
Financial Reporting And Analysis Using Financial Accounting Information
ISBN: 139
12th Edition
Authors: Charles H Gibson
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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