Analyzing a Change in Core Operating Profitability (Easy)

The following numbers were calculated from the financial statements for a firm for 2009 and 2008:

Calculate core return of net operating assets (core RNOA) and show how much of its change from 2008 to 2009 is due to the change in profit margin and the change in asset turnover. Box 12.8 will help you.
Note: Exercises E12.1–E12.3 are all connected and can be worked as one exercise.

Core profit margin Asset turnover 2009 2008 4.7% 5.1% 2.4 2.5