Make use of the financial statement data provided in Problem 10 for Safety-First, Inc. A. Calculate the

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Make use of the financial statement data provided in Problem 10 for Safety-First, Inc.
A. Calculate the operating profit margins and the NOPAT margins in 2009 and 2010 for Safety-First, Inc. What changes occurred?
B. Calculate the operating return on assets (or the venture’s basic earning power) using year-end balance sheet information for both 2009 and 2010. Describe what happened in terms of operating return performance.
C. Did the venture benefit from using interest-bearing debt in the form of bank loans and long-term debt in 2009 and 2010?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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