Question: Use the financial statement data for Castillo Products presented in Problem 7. A. Calculate the net profit margin in 2009 and 2010 and the sales-to-total-assets

Use the financial statement data for Castillo Products presented in Problem 7.

A. Calculate the net profit margin in 2009 and 2010 and the sales-to-total-assets ratio using year-end data for each of the two years.

B. Use your calculations from Part A to determine the rate of return on assets in each of the two years for Castillo Products.

C. Calculate the percentage growth in net sales from 2009 to 2010. Compare this with the percentage change in total assets for the same period.

D. Express each expense item as a percentage of net sales for both 2009 and 2010. Describe what happened that allowed Castillo Products to move from a loss to a profit between the two years.

Step by Step Solution

★★★★★

3.55 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Net profit margin 2009 65000900000 722 Net profit margin 2010 750001500000 500 Salestototalassets ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

151-B-F-E (146).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Use the financial statement data for the Bike-With-Us Corporation provided in Problem 3 to make the following calculations: A. Calculate the operating return on assets. B. Determine the effective...

Two years of financial statement data for the Munich Export Corporation are shown below. A. Calculate the inventory-to-sale, sale-to-cash, and purchase-to-payment conversion periods for Munich...

The following financial statement data for years ending December 31 for Foodworks Company are shown below.a. Determine the ratio of net sales to assets for 2012 and 2011.b. Does the change in the...

The Salza Technology Corporation successfully increased its "top line" sales from $375,000 in 2009 to $450,000 in 2010. Net income also increased as did the venture's total assets. You have been...

Please help with A, B, C, & D nt anout U the net monthly cash build or cash burn rate. ROA Model and Expenses Related to Sales) Use the financial statement data for Castillo Products pre- sented in...

1 . The Salza Technology Corporation successfully increased its top line sales from $ 3 7 5 , 0 0 0 in 2 0 1 5 to $ 4 5 0 , 0 0 0 in 2 0 1 6 . Net income also increased as did the ventures total...

The Toro Company CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and shares in thousands, except per share data) Fiscal years ended October 31 2011 2010 2009 Net sales 51.883,953 51,690,378 51,523,447...

You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you...

As a new financial analyst at Pacific Coast Investment Company (PCIC), a private brokerage firm, you are asked to demonstrate the skills you learned in your finance major and proved that you are...

Annual Report Cases CP13-1 Computing Ratios LO13-4, 13-5,13-6,13-7 Refer to the financial statements and footnotes of American Eagle Outfitters given in Appendix B at the end of this book. Compute...

A confidence interval for a population mean has length 20. a. Determine the margin of error. b. If the sample mean is 60, obtain the confidence interval. c. Construct a graph similar to Fig. 8.6 on...

If the current in a 180-mH coil changes steadily from 25.0 A to 10.0 A in 350 ms, what is the magnitude of the induced emf?

MC 1 2 : Philosophy underlying elimination of intercompany transactions When preparing consolidated financial statements, what is the main reason we eliminate all intercompany transactions between...

11.10* A sportswear company markets a premium brand of trainers. At present the revenue from sales of these trainers is 17m a year. They have been negotiating with representatives of a top US sports...

Why are IPOs often underpriced?

What affects the optimal timing of exit?

Why do investors and entrepreneurs want an exit?

Prepare the journal entries for each of company A and Company B, assuming that the trade is one without commercial substance Company A Cost $1,100 Accumulated amortization $350 Book value $750...

Assuming the market is arbitrage-free, if a six-month pure discount bond yields 1.9%, a one year-pure discount bond yields 2.3%, an eighteen-month bond yields 3.05%, what should be the price of a...

Type your question here Suppose the real risk-free rate is 4.20%, the average expected future inflation rate is 6.50%, and a maturity risk premium of 0.10% per year to maturity applies, i.e., MRP =...