Day Ko Incorporated presented the following comparative income statements for 2009 and 2008: Other relevant financial information

Question:

Day Ko Incorporated presented the following comparative income statements for 2009 and 2008:


Day Ko Incorporated presented the following comparative income s


Other relevant financial information follows:

Day Ko Incorporated presented the following comparative income s


Required
a. How did 2009 net sales compare with 2008?
b. How did 2009 net earnings compare with 2008?
c. Calculate the following for 2009 and 2008:
1. Net profit margin
2. Return on assets (using ending assets)
3. Total asset turnover (using ending assets)
4. DuPont analysis
5. Operating income margin
6. Return on operating assets (using ending assets)
7. Operating asset turnover (using ending assets)
8. DuPont analysis with operating ratios
9. Return on investment (using ending liabilities and equity)
10. Return on equity (using ending common equity)
d. Based on the previous computations, summarize the trend in profitability for thisfirm.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: