Complete the homework assignment using the Excel. Ensure your


Question Description:

30

Mar 06, 2016. 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 …

Answer

30