Question
D.H. Muller Company presented the following income statement in its 2011 annual report: (Dollars in thousands except per-share amounts) 2011 2010 2009 Net Sales 297,580
D.H. Muller Company presented the following income statement in its 2011 annual report:
(Dollars in thousands except per-share amounts) 2011 2010 2009
Net Sales 297,580 256360 242150
Cost of sales 206000 176,300 165,970
Gross profit 91580 80060 76180
Selling, admin, and other Exp 65200 57200 56000
Operating earnings 26380 22860 20180
Interest Expense (5990) (5100) (4000)
Other Deductions, net (320) (1100) (800)
Earnings before income taxes, noncontrolling
Interests, and extraordinary items 20070 16660 15380
Income taxes (8028) (6830) (6229)
Net earnings of subsidiaries applicable to
non controlling interests (700) (670) (668)
Earnings before extraordinary items 11342 9160 8483
Exraordinary items:
Gain on sale of investment, net of federal and
state income taxes $520 - 1050 -
Loss due to damages to South American facilities
net of noncontrolling interest $430 - (1600) -
Net earning $ 11,342 8,610 8,483
Earnings per common share:
Earnings before extraordinary items $ 2.20 1.82 1.65
Extraordinary items - (0.06) -
Net earnings $ 2.20 1.76 1.65
The asset side of the balance sheet is summarized as follows:
Dollars in thousands 2011 2010 2009
Current assets 89,800 84,500 83,100
Property, plant, equipment 45,850 40,300 39,800
other assets (includeing investments, deposits,
deferred charges, and intandibles) 10,110 12,200 13,100
Totoal assets $ 145,760 137,000 136,000
Required:
A. Based on this data, compute the following for 2011, 2010, and 2009:
1. Net profit margin
2. Return on assets (using total assets)
3. Total asset turnover (using total assets)
4. Dupong analysis
5. Operating income margin
6. Return on operating assets (using end of year operating assets)
7. Operating asset turnover (using end of year operating assets)
8. Dupont analysis with operating ratios
9. Gross profit margin
B. Discuss your findings
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