Module 6 Homework Assignment Use the information given in the green tabs to solve the questions below (answers in yellow, and show fomulas used when applicable. Calcluate the following profitablility ratios: 2010 2009 Fomulas a) Percent return on net sales b) Percent return on assets employed What does the percent retum on net sales indicate? ii) What does the percent retum on assets employed indicate? iii) What does the change from 2009 to 2010 in the percent retum on assets mean for the company? The CFO wants a projection for 2011 showing a net profit margin of 25%. What changes would have to happen for the net profit to increase? What was the long term debt to equity ratio in 2009 Ratio of Long TemDebt To Equity What does this mean What is better a higher or lower ratio? What are liquidity measures? Choose two ratios that assist in the determination of these measures. show the answers for both year as well as the formula) (hint see page 300-301 of text) What are debt service (coverage) ratios What is the fomula to use to determine debt service coverage The two purple tabs show the breakdown of each division in this company. What types of items might you decide to "trend" based on the infomation shown. (ie, if sales in one division declined from one year to the next, what kinds of trends might you want to start paying attention to. hint page 373 and 374)