P 8-6. Dorex, Inc., presented the following comparative income statements for 2007, 2006, and 2005: For...

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P 8-6. Dorex, Inc., presented the following comparative income statements for 2007, 2006, and 2005: For the Years Ended 2007 2006 2005 Net sales Other income $1,600,000 22,100 1,622,100 $1,300,000 21,500 $1,200,000 21,000 1,321,500 1,221,000 Costs and expenses: Material and manufacturing costs of products sold Research and development General and selling 740,000 90,000 600,000 19,000 14,000 624,000 78,000 500,500 18,200 13,650 576,000 71,400 465,000 17,040 13,800 Interest Other $1,463,000 $1,234,350 $1,143,240 For the Years Ended 2007 2006 2005 $77,760 32,659 45,101 8,100 37,001 Earnings before income taxes and minority equity Provision for income taxes Earnings before minority equity Minority equity in earnings Net earnings $159,100 62,049 97,051 10,200 86,851 $87,150 35,731 51,419 8,500 42,919 For the Years Ended 2007 2006 2005 Other relevant financial information: Average common shares issued Average long-term debt Average stockholders' equity (all common) Average total assets Average operating assets 29,610 $ 211,100 811,200 1,440,600 1,390,200 29,100 $ 121,800 790,100 1,220,000 1,160,000 28,800 $ 214,000 770,000 1,180,000 1,090,000 Required a. Calculate the following for 2007, 2006, and 2005: 1. Net profit margin 2. Return on assets 3. Total asset turnover 4. DuPont analysis 5. Operating income margin 6. Return on operating assets 7. Operating asset turnover 8. DuPont analysis with operating ratios 9. Return on investment 10. Return on total equity b. Based on the previous computations, summarize the trend in profitability for this firm. P 8-6. Dorex, Inc., presented the following comparative income statements for 2007, 2006, and 2005: For the Years Ended 2007 2006 2005 Net sales Other income $1,600,000 22,100 1,622,100 $1,300,000 21,500 $1,200,000 21,000 1,321,500 1,221,000 Costs and expenses: Material and manufacturing costs of products sold Research and development General and selling 740,000 90,000 600,000 19,000 14,000 624,000 78,000 500,500 18,200 13,650 576,000 71,400 465,000 17,040 13,800 Interest Other $1,463,000 $1,234,350 $1,143,240 For the Years Ended 2007 2006 2005 $77,760 32,659 45,101 8,100 37,001 Earnings before income taxes and minority equity Provision for income taxes Earnings before minority equity Minority equity in earnings Net earnings $159,100 62,049 97,051 10,200 86,851 $87,150 35,731 51,419 8,500 42,919 For the Years Ended 2007 2006 2005 Other relevant financial information: Average common shares issued Average long-term debt Average stockholders' equity (all common) Average total assets Average operating assets 29,610 $ 211,100 811,200 1,440,600 1,390,200 29,100 $ 121,800 790,100 1,220,000 1,160,000 28,800 $ 214,000 770,000 1,180,000 1,090,000 Required a. Calculate the following for 2007, 2006, and 2005: 1. Net profit margin 2. Return on assets 3. Total asset turnover 4. DuPont analysis 5. Operating income margin 6. Return on operating assets 7. Operating asset turnover 8. DuPont analysis with operating ratios 9. Return on investment 10. Return on total equity b. Based on the previous computations, summarize the trend in profitability for this firm.