P13-49A

(Learning Objectives 1, 5: Compute trend percentages, return on sales, asset turnover, and ROA, and compare with industry) Net sales, net income, and total assets for Aaron Shipping, Inc., for a five-year period follow:

(In thousands)	2012	2011	2010	2009	2008
Net sales	$900	$400	$352	$314	$296
Net income	50	39	46	37	24
Total assets	308	269	252	231	209

? Requirements

1. Compute trend percentages for each item for 2009 through 2012. Use 2008 as the base year and round to the nearest percent.

2. Compute the rate of return on net sales for 2010 through 2012, rounding to three decimal places. Explain what this means.

3. Compute asset turnover for 2010 through 2012. Explain what this means.

4. Use DuPont analysis to compute rate of return on average total assets (ROA) for 2010 through 2012.

5. How does Aaron Shipping