Dorex, Inc., presented the following comparative income statements for 2009, 2008, and 2007:
|
For the Years Ended |
|||
|
2009 |
2008 |
2007 |
|
|
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: |
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|
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 |
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|
2009 |
2008 |
2007 |
|
|
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 |
|
For the Years Ended |
|||
|
2009 |
2008 |
2007 |
|
|
Other relevant financial information: |
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|
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 2009, 2008, and 2007:
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.