# Question: Following are selected financial data in thousands of dollars for the

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& 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 DuPont system for Hunter for 2012. Insert the appropriate dollar amounts wherever possible.

c) Use the DuPont system to calculate the return on assets for the two years, and determine why they changed.

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& 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 DuPont system for Hunter for 2012. Insert the appropriate dollar amounts wherever possible.

c) Use the DuPont system to calculate the return on assets for the two years, and determine why they changed.

## Answer to relevant Questions

1. "A firm pays dividends of $5 million once annually. Analysts expect the dividends to remain at this amount indefinitely. The cost of equity is 14%.a. Calculate the value of the firm.b. Analysts now expect that dividends ...Do leading indicators tend to give longer warnings before peaks or before troughs? What is the implication for the investor?"Virtuous and Vicious: Considering Character" Please respond to the following:Take a position, for or against, this statement: Virtue enables people to overcome negative emotions, desires, and tendencies. Support your ...Consider the following. (Give your answers correct to one decimal place.) (a) Find the critical value χ2(22, 0.025). ________________(b) Find the critical value χ2(11, 0.10). ________________ (c) Find the critical value ...Suppose Canadian wheat sells for $100 per bushel and Russian wheat sells for 1600 rubles per bushel.a. If you believe that the purchasing-power parity theory holds, and if the current exchange rate is 12 rubles per dollar, ...Post your question