(Learning Objectives 1, 4: Computing trend percentages, return on sales equity, and comparison with the industry) Net sales, net income, and total assets for Sorrento Shipping Limited for a fi ve-year period follow:

❙ Requirements 1. Compute trend percentages for each item for 20X3 through 20X6. Use 20X2 as the base year and round to the nearest percent.

2. Compute the net profi t margin for 20X4 through 20X6, rounding to three decimal places.

3. How does Sorrento Shipping’s net profi t margin compare with that of the industry?

In the shipping industry, rates above 5% are considered good, and rates above 7% are outstanding.