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Assignment
You should be able to complete the following problem assignment. Each of the steps performed in the assignment were addressed in this tutorial. If you have any problems, please contact your professor.
Your company has posted sales for the
past five years in the following amounts: |
2009:
2008:
2007:
2006:
2005: |
$500,000
$523,000
$489,000
$475,000
$389,000 |
| Net Income for those years is: |
2009:
2008:
2007:
2006:
2005: |
$80,000
$78,900
$67,800
$65,000
$58,000 |
| Total Assets are: |
2009:
2008:
2007:
2006:
2005: |
$290,000
$278,000
$225,000
$230,000
$215,000 |
| Fixed Assets are: |
2009:
2008:
2007:
2006:
2005: |
$87,600
$78,000
$68,000
$65,000
$67,000 |
To calculate Net Profit Margin, divide Net Income by Sales
To calculate Total Asset Turnover, divide Sales by Total Assets
To calculate Fixed Asset Turnover, divide Sales by Fixed Assets
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Assignment
- Calculate net profit margin, total asset turnover and fixed asset turnover for each of the five years.
- Chart company performance versus industry performance given the following industry figures. Create one chart for each ratio.
2009:
2008:
2007:
2006:
2005: |
NPM 5.0%, TA turnover 2,
NPM 5.1%, TA turnover 1.8,
NPM 5.3%, TA turnover 1.7,
NPM 5.6%, TA turnover 1.6,
NPM 5.4%, TA turnover 1.5,
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Fixed Asset Turnover 3.3
Fixed Asset Turnover 3.5
Fixed Asset Turnover 3.5
Fixed Asset Turnover 3.2
Fixed Asset Turnover 3.1
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- Save your results to a file.
- Make sure you can open the file again.
- How would you write the formula for quick ratio?
Current Assets – Inventory divided by Current Liabilities?
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