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

Data Table:

(In thousands) 2016 2015 2014 2013 2012

Net sales $1,351 $501 $490 $311 $301

Net income $21 $30 $28 $31 $26

Total assets $308 $270 $260 $230 $210

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

Read the requirements:

Compute trend percentages for each item for 2013 through 2016. Use 2012 as the base year and round to the nearest percent.

Compute the rate of return on net sales for 2014 through 2016. Explain what this means.

Compute asset turnover for 2014 through 2016. Explain what this means.

Use Dupont Analysis to compute rate of return on average total assets (ROA) for 2014 through 2016.

How does Aaron Shippings return on net sales for 2016 compare with previous years? How does it compare with that of the industry? In the shipping industry, rates above 9% are considered good, and rates above 11% are outstanding.

Evaluate Aaron Shipping, Inc.s ROA for 2016, compared with previous years and against an 18% benchmark for the industry.