Yahoo! Inc.* included these statements in its 2010 annual report:

Required

a. Compute the following for 2009 and 2010:

1. Net profit margin

2. Total asset turnover (use year- end total assets)

3. Return on assets (use year- end total assets)

4. Operating income margin

5. Return on operating assets (use year- end operating assets)

6. Sales to fixed assets (use year- end operating assets)

7. Return on total equity (use year- end total equity)

8. Gross profit margin

b. Comment on the trends in (a).

c. 1. Prepare a horizontal common- size consolidated statement of operations for 2008– 2010. Use 2008 as the base.

2. Comment on the results in (1).