Following are selected financial data in thousands of dollars for the Hunter Corporation.
|
2012 |
2011 |
|
|
Current assets |
$500 |
$400 |
|
Fixed assets, net |
700 |
600 |
|
Total assets |
1,200 |
1,000 |
|
Current liabilities |
300 |
200 |
|
Long-term debt |
200 |
200 |
|
Common equity |
700 |
600 |
|
Total liabilities and equity |
$1,200 |
$1,000 |
|
Net sales |
$1,500 |
$1,200 |
|
Total expenses |
1,390 |
1,100 |
|
Net income |
110 |
100 |
a. Calculate Hunter’s rate of return on total assets in 2012 and in 2011. Did the ratio improve or worsen?
b. Diagram the expanded Du Pont system for Hunter for 2012. Insert the appropriate dollar amounts wherever possible.
c. Use the Du Port system to calculate the return on assets for the two years, and determine why they changed.