FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The net sales, net income and total assets for Aaron Shipping, Inc. for a five-year period is shown
in the following table. Use DuPont analysis to compute rate of return on average total assets for
2010 through 2012.
(In thousands) 2012 2011 2010 2009 2008
Net sales
$900 $400 $352 $314 $296
Net income
Total assets
50
39 46 37 24
308 269 252 231 209
Staples, Inc. is one of the largest suppliers of office products in the United States. It had net
income of $738.7 million and sales of $24,275.5 million in 2009. Its total assets were $13,073.1
million at the beginning of the year and $13,717,3 million at the end of the year.
What is Staples, Inc.'s (a) asset turnover ratio and (b) profit margin ratio?
(Round to two decimals.)
Provide a brief interpretation of your results.
Using the information below for Laurels Company; determine the manufacturing costs added
during the current year:
Direct materials used
$6,400
Direct labor
8,400
Total factory overhead
Beginning work in process 4,400
6,500
Ending work in process
a. $18,900.
b. $17,800.
c. $23,700.
d. $14,800.
e. $21,300.
6,800
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Transcribed Image Text:The net sales, net income and total assets for Aaron Shipping, Inc. for a five-year period is shown in the following table. Use DuPont analysis to compute rate of return on average total assets for 2010 through 2012. (In thousands) 2012 2011 2010 2009 2008 Net sales $900 $400 $352 $314 $296 Net income Total assets 50 39 46 37 24 308 269 252 231 209 Staples, Inc. is one of the largest suppliers of office products in the United States. It had net income of $738.7 million and sales of $24,275.5 million in 2009. Its total assets were $13,073.1 million at the beginning of the year and $13,717,3 million at the end of the year. What is Staples, Inc.'s (a) asset turnover ratio and (b) profit margin ratio? (Round to two decimals.) Provide a brief interpretation of your results. Using the information below for Laurels Company; determine the manufacturing costs added during the current year: Direct materials used $6,400 Direct labor 8,400 Total factory overhead Beginning work in process 4,400 6,500 Ending work in process a. $18,900. b. $17,800. c. $23,700. d. $14,800. e. $21,300. 6,800
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