Net sales, net income, and total assets for Azbell Shipping, Inc., for a five-year period follow:

Requirements
1. Compute trend percentages for each item for 2009 through 2012. Use 2008 as the base year and round to the nearest percent.
2. Compute the rate of return on net sales for 2010 through 2012, rounding to three decimal places. Explain what this means.
3. Compute asset turnover for 2010 through 2012. Explain what this means.
4. Use DuPont analysis to compute rate of return on average total assets (ROA) for 2010 through 2012.
5. How does Azbell Shipping€™s return on net sales compare with previous years? How does it compare with that of the industry? In the shipping industry, rates above 5% are considered good, and rates above 7% are outstanding.
6. Evaluate Azbell Shipping, Inc.€™s ROA for 2012, compared with previous years, and against a 15% benchmark for theindustry.

Transcribed Image Text:

(In thousands) Net Net income Total assets 2012 2011 2010 2009 2008 $700 $618 $325 $309 $299 27 201 39 262 41 34 223 300 253