Complete the homework assignment using the Excel. Ensure your work is organized, properly labeled, and highlight your final answer. Written responses must adhere to APA format. Included attachment of questions in case they do not come out properly.

P 8-6 Dorex, Inc., presented the following comparative income statements for 2011, 2010, and 2009:

	For the Years Ended
	2011	2010	2009
Net sales	$1,600,000	$1,300,000	$1,200,000
Other income	22,100	21,500	21,000
	1,622,100	1,321,500	1,221,000
Costs and expenses:
Material and manufacturing costs of products sold	740,000	624,000	576,000
Research and development	90,000	78,000	71,400
General and selling	600,000	500,500	465,000
Interest	19,000	18,200	17,040
Other	14,000	13,650	13,800
	$1,463,000	$1,234,350	$1,143,240
	For the Years Ended
	2011	2010	2009
Earnings before income taxes and noncontrolling interest	$159,100	$87,150	$77,760
Provision for income taxes	62,049	35,731	32,659
Earnings before noncontrolling interest	97,051	51,419	45,101
Noncontrolling interest	10,200	8,500	8,100
Net earnings	86,851	42,919	37,001
Other relevant financial information:
Average common shares issued	29,610	29,100	28,800
Average long-term debt	$ 211,100	$ 121,800	$ 214,000
Average stockholders' equity (all common)	811,200	790,100	770,000
Average total assets	1,440,600	1,220,000	1,180,000
Average operating assets	1,390,200	1,160,000	1,090,000

Required

a. Calculate the following for 2011, 2010, and 2009:

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 this firm.

• P 8-11 Transactions affect various financial statement amounts.

		Total Retained Stockholders'
	Net Profit	Earnings	Equity
a. A stock dividend is declared and paid.	_____	_____	_____
b. Merchandise is purchased on credit.	_____	_____	_____
c. Marketable securities are sold above cost.	_____	_____	_____
d. Accounts receivable are collected.	_____	_____	_____
e. A cash dividend is declared and paid.	_____	_____	_____
f. Treasury stock is purchased and recorded at cost.	_____	_____	_____
g. Treasury stock is sold above cost.	_____	_____	_____
h. Common stock is sold.	_____	_____	_____
i. A fixed asset is sold for less than book value.	_____	_____	_____
j. Bonds are converted into common stock.	_____	_____	_____

• Required Indicate the effects of the previous transactions on each of the following: net profit, retained earnings, total stockholders' equity. Use + to indicate an increase, ? to indicate a decrease, and 0 to indicate no effect.

P 9-2 A firm has earnings before interest and tax of $1,000,000, interest of $200,000, and net income of $400,000 in Year 1.

Required

a. Calculate the degree of financial leverage in base Year 1.

b. If earnings before interest and tax increase by 10% in Year 2, what will be the new level of earnings, assuming the same tax rate as in Year 1?

c. If earnings before interest and tax decrease to $800,000 in Year 2, what will be the new level of earnings, assuming the same tax rate as in Year 1?

P 9-10 Smith and Jones, Inc. is primarily engaged in the worldwide production, processing, distribution, and marketing of food products. The following information is from its 2011 annual report:

	2011	2010
Earnings per share	$ 1.08	$ 1.14
Cash dividends per common share	$ 0.80	$ 0.76
Market price per common share	$ 12.94	$ 15.19
Common shares outstanding	25,380,000	25,316,000
Total assets	$1,264,086,000	$1,173,924,000
Total liabilities	$ 823,758,000	$ 742,499,000
Nonredeemable preferred stock	$ 16,600,000	$ 16,600,000
Preferred dividends	$ 4,567,000	$ 930,000
Net income	$ 32,094,000	$ 31,049,000

Required

a. Based on these data, compute the following for 2011 and 2010:

1. Percentage of earnings retained

2. Price/earnings ratio

3. Dividend payout

4. Dividend yield

5. Book value per share

b. Discuss your findings from the viewpoint of a potential investor.

Complete the homework assignment using the Excel. Ensure your work is organized, properly labeled, and highlight your final answer. Written responses must adhere to APA format. P 8-6 Dorex, Inc., presented the following comparative income statements for 2011, 2010, and 2009: For the Years Ended 2011 2010 2009 Net sales $1,600,000 $1,300,000 $1,200,000 Other income 22,100 21,500 21,000 1,622,100 1,321,500 1,221,000 Costs and expenses: Material and manufacturin 740,000 624,000 576,000 g costs of products sold Research and 90,000 78,000 71,400 development General and 600,000 500,500 465,000 selling Interest 19,000 18,200 17,040 Other 14,000 13,650 13,800 $1,463,000 $1,234,350 $1,143,240 For the Years Ended 2011 2010 2009 Earnings before income taxes and $159,100 $87,150 $77,760 noncontrolling interest Provision for 62,049 35,731 32,659 income taxes Earnings before noncontrolling interest Noncontrollin g interest Net earnings Other relevant financial information: Average common shares issued Average longterm debt Average stockholders' equity (all common) Average total assets Average operating assets : : : : : : : 97,051 51,419 45,101 10,200 8,500 8,100 86,851 42,919 37,001 29,610 29,100 28,800 $ 211,100 $ 121,800 $ 214,000 811,200 790,100 770,000 1,440,600 1,220,000 1,180,000 1,390,200 1,160,000 1,090,000 Required a. Calculate the following for 2011, 2010, and 2009: 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 this firm. : : P 8-11 Transactions affect various financial statement amounts. Total Retai Stockhol ned ders' Net Earni Equity Profit ngs a. A stock dividend is declared _____ _____ _____ and paid. b. Merchandise is purchased on _____ _____ _____ credit. c. Marketable securities are sold _____ _____ _____ above cost. d. Accounts receivable are _____ _____ _____ collected. e. A cash dividend is declared and _____ _____ _____ paid. f. Treasury stock is purchased and _____ _____ _____ recorded at cost. g. Treasury stock is sold above _____ _____ _____ cost. h. Common stock is sold. _____ _____ _____ i. A fixed asset is sold for less than _____ _____ _____ book value. j. Bonds are converted into _____ _____ _____ common stock. : Required Indicate the effects of the previous transactions on each of the following: net profit, retained earnings, total stockholders' equity. Use + to indicate an increase, to indicate a decrease, and 0 to indicate no effect. : : P 9-2 A firm has earnings before interest and tax of $1,000,000, interest of $200,000, and net income of $400,000 in Year 1. Required a. Calculate the degree of financial leverage in base Year 1. b. If earnings before interest and tax increase by 10% in Year 2, what will be the new level of earnings, assuming the same tax rate as in Year 1? c. If earnings before interest and tax decrease to $800,000 in Year 2, what will be the new level of earnings, assuming the same tax rate as in Year 1? P 9-10 Smith and Jones, Inc. is primarily engaged in the worldwide production, processing, distribution, and marketing of food products. The following information is from its 2011 annual report: 2011 2010 Earnings per share $ 1.08 $ 1.14 Cash dividends per common $ 0.80 $ 0.76 share Market price per common share $ 12.94 $ 15.19 Common shares outstanding 25,380,000 25,316,000 $1,264,086, $1,173,924, Total assets 000 000 $ $ Total liabilities 823,758,000 742,499,000 $ $ Nonredeemable preferred stock 16,600,000 16,600,000 Preferred dividends Net income : : : : : : $ 4,567,000 $ 32,094,000 $ 930,000 $ 31,049,000 Required a. Based on these data, compute the following for 2011 and 2010: 1. Percentage of earnings retained 2. Price/earnings ratio 3. Dividend payout 4. Dividend yield 5. Book value per share b. Discuss your findings from the viewpoint of a potential investor