Question
1) What does the change from 2009 to 2010 (decreasing) in the percent return on assets mean for the company? 2) The CFO wants a
1) What does the change from 2009 to 2010 (decreasing) in the percent return on assets mean for the company?
2) The CFO wants a projection for 2011 showing a net profit margin of 25%. What changes would have to happen for the net profit to increase?
3) Describe at least two things that could happen within this company that would make it necessary for the controller to dig into the numbers and provide a write up to management. (for instance, the controller might notice that inventory has shrunk by over 50% what might he look for in the numbers and what ratios might he use to check things before alerting management)
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