Day Ko Incorporated presented the following comparative income statements for 2009 and 2008:
|
For the Years Ended |
||
|
2009 |
2008 |
|
|
Net sales |
$1,589,150 |
$1,294,966 |
|
Other income |
22,334 |
20,822 |
|
1,611,484 |
1,315,788 |
|
|
Costs and expenses: |
||
|
Material and manufacturing costs of products sold |
651,390 |
466,250 |
|
Research and development |
135,314 |
113,100 |
|
General and selling |
526,680 |
446,110 |
|
Interest |
18,768 |
11,522 |
|
Other |
15,570 |
7,306 |
|
1,347,722 |
1,044,288 |
|
|
Earnings before income taxes and no controlling interest |
263,762 |
271,500 |
|
Provision for income taxes |
114,502 |
121,740 |
|
Earnings before no controlling interest |
149,260 |
149,760 |
|
No controlling interest |
11,056 |
12,650 |
|
Net earnings |
$138,204 |
$137,110 |
Other relevant financial information follows:
|
For the Years Ended |
||
|
2009 |
2008 |
|
|
Average common shares issued |
29,580 |
29,480 |
|
Total long term debt |
$209,128 |
$212,702 |
|
Total stockholders’ equity (all common) |
810,292 |
720,530 |
|
Total assets |
1,437,636 |
1,182,110 |
|
Operating assets |
1,411,686 |
1,159,666 |
|
Dividends per share |
1.96 |
1.86 |
|
Stock price (December 31) |
533/4 |
761/8 |
Required
a. How did 2009 net sales compare with 2008?
b. How did 2009 net earnings compare with 2008?
c. Calculate the following for 2009 and 2008:
1. Net profit margin
2. Return on assets (using ending assets)
3. Total asset turnover (using ending assets)
4. DuPont analysis
5. Operating income margin
6. Return on operating assets (using ending assets)
7. Operating asset turnover (using ending assets)
8. DuPont analysis with operating ratios
9. Return on investment (using ending liabilities and equity)
10. Return on equity (using ending common equity)
d. Based on the previous computations, summarize the trend in profitability for this firm.