还剩29页未读，继续阅读
本资源只提供10页预览，全部文档请下载后查看！喜欢就下载吧，查找使用更方便
文本内容:
Chapter8ProfitabilityPROBLEMSPROBLEM8-1Net Income Before Minority Share of^.Earnings and Nonrecurring ItemsNet Profit Margin=-------------------------------------------------------------------------------20042003$52,500$40,000$1,050,000$1,000,
0005.00%
4.00%Net SalesNet Income Before Minority Share of Earnings and Nonrecurring Items Returnon Assets=-----------------------------------------------------------------------------------------Average Total Assets20042003$52,500$40,000$230,000$200,
00022.83%
20.00%Total Asset Turnover=Average Total AssetsNet Sales20042003$1,050,000$1,000,000$230,000$200,000PROBLEM8-7Net Income Before Minority Share ofEarnings and Nonrecurring Itemsa.
1.Net Profit Margin=------------------------------------------------------------------------------------200420032002$171,115$163,497$143,990$1,002,100$980,500$900,000Net Sales
17.08%=
16.67%=
16.00%二Net ncom Before Minority Share of工㊀Earnings and Nonrecurring Items
2.Return onAss ts=----------------------------------------------------------------------------------㊀200420032002$171,115$163,497$143,990$839,000$770,000$765,000Av ragTotal Assets㊀㊀=
20.40%=
21.23%=
18.82%N tSalas「㊀Total AssetTurnover=-------------------------------------------------------Average Total Assets200420032002$1,002,100$980,500$900,000$839,000$770,000$$765,000=
1.19times=
1.27times
1.18timesper yearper yearper year
4.DuPont AnalysisReturn onOperating IncomeTotal AssetAssetsTurnoverMargin x二2004:
20.88%*
1.19times per year=
17.08%x2003:
21.17%*
1.27times per year=
16.67%x2002:
18.88%*
1.18times per year
16.00%x二Net Income Before MinorityShare ofEarnings and Nonrecurri ngItems+[Interest Expensex1-Tax Rate]Return onnv stmnt=-------------------------工㊀㊀Av agLong-Term Liabilities Equity㊀工㊀Estimated tax rate:200420032002⑴Provision forincome taxes$116,473$113,616$105,560⑵Earnings before income taxes$287,588$277,113$249,550tax rate[1divided by2]
40.50%
41.00%
42.30%1-tax rate
59.50%
59.00%
57.70%⑶Interest expensex l-tax rate$14,620x
59.8,6997,13950%$12,100x
59.00%$11,250x
57.70%6,4914Net earnings171,115163,497143,990179,814170,636150,4813plus4A120,000112,000101,000⑸Average long-term debt406,000369,500342,0006Average shareholdersequity526,000481,500443,0005plus6B
34.19%
35.44%
33.97%A divided by BNet IncomeBeforeNonrecurri ngItems-,Dividends onR cimabl PreferredStock Return on Equity㊀㊀㊀㊀二---------------------------------Average Total Equity200420032002Net earnings$171,115$163,497$143,990Average total equity$406,000$369,500$342,000r.Net Salesr7/・Sales toFixed Assets=-------------------------------------------------------------------Averag NatFixed Ass ts㊀㊀200320022004$980,500$900,000$1,002,100$281,000$173,000$302,500The ratioscomputed indicatea veryprofitable firm.Most ratiosindicate Avery slightreductionb.in profitabilityin
2003.Sales tofixed assetshas declinedmaterially,but thisis theonly ratiofor whichthe trendappearsto benegative.PROBLEM8-8Net IncomeBefore MinorityShar of Earnings and Nonrecurring tms a.
1.㊀工㊀N tProfitMargin㊀二----------------------------------------------------------------------------------------------------------------------------------------------------------200420032002$20,070-$8,028$16,660-$6,830$15,380$6,229一$297,580$256,360$242,150=
4.05%=
3.83%=
3.78%Net SalesN tIncomeB forMinorityShare of㊀㊀㊀Earningsand Nonrecurring Items
2.Return onAssetsAv agTotal Assets㊀工㊀200420032002$20,070-$8,028$16,660-$6,830$15,380-$6,229$145,760$137,000$136,000=
8.26%=
7.18%=
6.73%Net SalesTotal AssetTurnover=-------------------------------------------------------Average Total Assets200420032002$256,360$297,580$242,150$137,000$145,760$136,000per year=
2.04times per year=
1.87times=
1.78times per year
4.DuPont AnalysisReturn onOperating Income Margin Total AssetAssets TurnoverX2004:
8.26%
4.05%
2.04timesX2003:
7.16%*
3.83%
1.87times—X2002:
6.73%
3.78%
1.78timesX*Rounding difference from the
7.18%computed in
2...Operating ncom工㊀Op ratingIncomeMargin=-------------------------------------------------㊀Nat Salas200420032002$26,380$22,860$20,180$297,580$256,360$242,150=
8.86%=
8.92%=
8.33%Return onOperating Assets Average Operating Assets二
6.Operating Income200420032002$26,380$22,860$20,180____$89,800+$45,850$84,500+$40,300$83,100+$39,800=
28.32%
19.45%
16.42%二二,Net Sales
7.Operating AssetTurnover=-------------------------------------------------------------------Av rag Operating Assets一㊀㊀200420032002$297,580$256,360$242,150$89,800+$45,850$84,500+$40,300$83,100+$39,
8002.19times peryear二
2.05times peryear二
8.DuPont Analysiswith OperatingRatiosReturn onOperating IncomeTotal AssetAssetsMargin Turnover2004:
19.40%*
8.86%
2.19times
8.92%
2.05times2003:
18.29%*
8.33%
1.97times2002:
16.41%**Rounding differencefrom the
19.45%,
18.32%,and
16.42%computed in
6.Gross Profit「..
9.Gross ProfitMargin=--------------------------------------------200420032002$91,580$80,060$76,180$297,580$256,360$242,150=
30.77%=
31.23%=
31.46%N tSalas㊀b.Net profit margin andtotal asset turnover bothimproved.This resultedin a substantial improvementtoreturn onassets.Operating incomemargin declinedslightly in2003after a substantial improvement in
2002.Operating assetturnover improvedeach year.The resultof theimprovementinoperating incomemarginand operatingassetturnoverwas asubstantial improvementin return on operatingassets.Gross profitmargin declinedslightly eachyear.Overall profitabilityimproved substantiallyover thethree-year period.PROBLEM8-9Net ncomB forMinoritySharof工㊀㊀㊀㊀Earningsand Nonrecurring tms a.
1.----------------------------------------------------------------------------R turnonAssets=工㊀㊀Average Total Assets200420032002A$2,100,000$1,950,000$1,700,000$2,600,000$2,300,000$2,200,0007,000,0006,200,0005,800,000100,000100,000100,0009,000,00010,000,0008,300,000$17,600,000$19,700,000$16,400,000Net IncomeBefore MinorityShare ofEarningsand Nonrecurring Items+
2.[Interest Expensex1-Tax-Rate]Return onInvestment=Average Long-Term Liabilities+EquityEstimated tax rate:2004200320021Provision forincome taxes$1,500,000$1,450,000$1,050,0002Income beforetax3,600,0003,400,0002,750,000tax rate=1divided by
241.67%
42.65%
38.18%1-tax rate
58.33%
57.35%
61.82%3Interest expensex l-tax rate$80,000x
58.33%$600,000x
57.35%$550,$466,640000x
61.82%$344,100$340,0004Net income$2,100,000$1,950,000$1,700,0003plus4A$2,566,640$2,294,100$2,040,010Long-term debtPreferred stock$7,000,000$6,200,000$5,800,000Common equity100,000100,000100,000B10,000,0009,000,0008,300,000A dividedby B$17,100,000$15,300,000$14,200,
00015.01%
14.99%
14.37%Net IncomeBefore NonrecurringItems
3.Dividends onRedeemable PreferredStockReturn onTotal Equity=Average Total Equity200420032002$1,950,000$1,700,000$2,100,000$100,000+$9,000,000$100,000++$8,300,000$100,000+$10,000,000=
20.79%=
21.43%=
29.24%N tncomBefore Nonrecurring㊀工㊀Items=Pr frr dDivid nds㊀㊀㊀㊀
4.Return onCommon Equity=------------------------------------------------------------------------------------200420032002，$2,100,000-$14,000$1950,000-$14,000$1,700,000-$14,000$10,000,000$9,000,000$8,300,000Average Common Equity一一b.Return onassets improved in2003and then declined in
2004.Return oninvestment improvedeachyear.Return ontotal equityimproved andthendeclined.Return oncommon equityimproved andthendeclined.In general,profitability hasimprovedin2003over2002but wasdown slightlyin
2004.c.The useof long-term debtand preferredstock bothbenefited profitability.Return oncommon equityis slightlymore thanreturn ontotal equity,indicating abenefit frompreferredstock.Return ontotalequityis substantiallyhigher thanreturnoninvestment,indicating abenefitfrom long-term debt.PROBLEM8-10a.Sales$120,000Gross profit40%48,000Cost ofgoods sold60%72,000Beginning inventory$10,000+purchase100,000Total available110,000-Ending inventoryCost ofgoods sold$72,000Ending inventory110,000-72,000$38,000Sales$120,000Gross profit50%60,000Cost ofgoods sold50%60,000$10,000Beginning inventory100,000Purchases$110,000Total available50,000-Ending inventory$60,000Cost ofgoods soldb.If grossprofit were50%,the analysiswould beas follows:If grossprofit werehigher,the losswould behigher.TotalNet RetainedStockholdersProfit EarningsEquity00a.a stockdividend isdeclared andpaid.000b.Merchandise is purchased oncredit.+++c.Marketable securitiesare soldabovecost.000d.Accounts receivablearecollected.o-e.A cashdividend isdeclared andpaid.f.Treasury stockispurchasedand0o-recorded atcost.g.Treasury stockis soldabove00+cost.00+h.Common stockis sold.i.A fixedasset issold forlessthan bookvalue.j.Bonds areconverted into00+common stock.Net IncomeBefore MinorityShareof EarningsandNonrcurringItems㊀1a.
1.Nat ProfitMargin=----------------------------------------------------------------------------------Net Sales$72,7002004:$980,000=
7.42%$64,9002003:=
6.76%$960,000$57,8002002:
6.15%$940,000$51,2002001:
5.69%$900,000$44,9002000:
5.10%$880,000Net Salas
2.Total AssetTurnoverAverage TotalAssets$980,000$859,000+$86,000/22004:=
1.14tim spar year㊀$960,000$861,000+$870,000/22003:=
1.11times par y ar㊀$940,000$870,000+$867,000/22002:=
1.08times pery ar㊀$900,000「….2001:----------------------------------------------=
1.04times peryear$867,000+$863,000/22000:Cannot computeaverage assets.Year-End BalanceSheet Figures$980,00=
1.14times peryear$859,0002004:$960,000「一.2003:----------------=
1.11times peryear$861,000$940,000「八.2002:----------------=
1.08tim speryar㊀㊀$870,000$900,000「….2001:----------------=
1.04times pryear㊀$867,000$880,000「”.2000:----------------=
1.02tim speryar㊀㊀$863,000Net IncomeBefore MinorityShareof EarningsandNonrecurring Items3Return onAssets=Av ragTotalAssets㊀㊀.Average BalanceSheet Figures$72,7002004:
8.45%$859,000+$861,000/2$64,9002003:=
7.50%$861,000+$870,000/2$57,8002002:
6.66%$870,000+$867,000/2$51,2002001:=
5.92%$867,000+$863,000/22000:Cannot computeaverage assets.Net IncomeB forNoncurring㊀㊀Items MinusPr fred Dividends㊀㊀工=Return onCommon Equity=Average Common Equity20042003$52,500$40,000$170,000$160,
00030.88%
25.00%Ahl Enterprisehas hadasubstantialrise inprofit tosales.This is somewhat temperedby areductionin assetturnover.Given aslight rise in commonequity,there isasubstantialrise inreturn oncommonequity.PROBLEM8-2a.20042003Sales
100.0%Cost ofgoods sold
60.
7100.0%Gross profit
39.
360.8Selling expense
14.
639.2General expense
10.
020.0Operating income
14.
78.3Income tax
5.
910.9Net income
8.8%
4.2b.Starr Canninghas hada sharpd modestrise inselling expensecoupled withonly aan overallingeneral expensesriseinthe netprofitmargin.PROBLEM8-3Earnings Beforeinterest andtax$245,000Interest750,000x6%45,000Earnings beforetax$200,000Tax80,000Net income$120,000Preferred dividends15,000Income availableto common$105,000Year-End BalanceSheet Figures$72,7002004:=
8.46%$859,000$64,9002003:=
7.54%$861,000$57,8002002:=
6.64%$870,000$51,2002001:=
5.91%$867,000$44,9002000:=
5.20%$863,000Net Profit小」Marginx4Assets=ei7\DuPont Return on LTurnovr㊀.4Average BalanceSheet Figures2004:
7.42%x
1.14times=
8.46%2003:
6.76%x
1.11times=
7.50%2002:
6.15%x
1.08times=
6.64%2001:
5.69%x
1.04times=
5.92%2002:Cannot computeaverage assetsYear-End BalanceSheet Figures2004:
7.42%x
1.14times=
8.46%2003:
6.76%x
1.11times=
7.50%2002:
6.15%x
1.08times=
6.64%2001:
5.69%x
1.04times=
5.92%2000:
5.10%x
1.02times=
5.20%Operating Income5Operating ncomMargin=工㊀.Net Sales2004:$355,000-$240,000$980,0002003:$344,000-$239,000=1Q94%$960,000$333,000-$238,000_9nn911O-------------------------------------ZUUz=
10.11-6$940,000$320/000-$239,0002001:=
9.00%$900,000$314/000-$235,0002000:=
8.98%$880,000,Net Sales6Operating AssetTurnover=-------------------------------------------------------------------.Average OperatingAssts㊀2004:$980,
0001.26times peryear$859,000-$80,000+$861,000-$85,000/22003:$960,
0001.23times peryear$861,000-$85,000+$870,000-$90,000/22002:$940,
0001.21times peryear$870,000-$90,000+$867,000-$95,000/22001:$900,000=
1.17times peryear$870,000-$95,000+$863,000-$100,000/2Year-End BalanceSheet Figures$980,0002004:=
1.26tim sparyar㊀㊀$859,000-$80,000$960,0002003:=
1.24times peryear$861,000$85,000一$940,000「〜,2002:------------------------------------=
1.21times peryear$870,000一$90,000$900,0002001:=
1.17times peryear$867,000-$95,000$880,000$863,000-$100,0002000:=
1.15times pryear㊀,Operating IncomeNet IncomeBefore MinorityShare「ofEarningsand NonrecurringItems$120,
0007.Return onOperating Assets=-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------a.Return onAssets===
4.00%Average TotalAssetsAv$3r,a0g00,O0p0e0ratingAssts㊀㊀㊀$355,000-$240,0002004:Net IncomeBeforeNonrecurring
14.79%$859,I0t0e0ms--$80,000Div+id$e8n6d1s,0o0n0-$85,000/2b__.Redeemable PreferredStock$120,000------------------------------------------------------------------------------------Return onTotalEquity===
4.00%.Average TotalEquity$3,000,000$344,000-$239,0002003:
13.50%NetInc$o8m6e1,B0e0f0or-e$85,000+$870,000-$90,000/2Nonr curringms-㊀工七㊀Return onAverage CommonEquity$333,000-$238,0002002:
12.24%CommonEquityAverage CommonEquity$870,000-$90,000+$867,000-$95,000/2$200,000-$80,000-$15,000$320,000-$239,0002001:=
7.00%
10.55%$1,500,000$867,000-$95,000+$863,000-$100,000/2Recurring Earnings,Excluding InterestExpense,Tax ExpenseEquity Earnings,Times Interestand MinorityEarnings________________=$245,000二____________________________Earned InterestExpense,Including$45,000Capitalize dnt rst工㊀㊀=
5.44times peryearPROBLEM8-4Vent MoldedVent MoldedPlasticsPlasticsSales
101.0%
100.Sales returns
7.03%.3Cost ofgoods sold
72.
167.1Selling expense
9.
410.1General expense
7.
07.9Other incomeOther.
4.4expense Incometax
1.
51.
34.
85.5Net income
5.6%
8.5%Sales returnsare higherthan theindustry.Cost of sales ismuch higher,offset someby loweroperatingexpenses.Other expenseperhaps interestissomewhathigher.Lower taxesare perhapscausedby lowerincome.Overall profitis less,primarily dueto costofsales.PROBLEM8-5$1,589,150cca
122.72%---------------------------------二.$1,294,9662004sales were
122.72%of thosein
2003.$138,204……b---------------=
100.80%.$137,1102004net earningswere
100.80%of thosein
2003.Net ProfitBefore MinorityShareof2,n EarningsandNonrecurringItemsc1q♦上一・Net ProfitMargin=----------------------------------------------------------------------Net Sales..20042003$149,260$149,760=]].
569.39%%$1,294,966$1,589,150Net ncomBefore MinorityShareof工㊀EarningsandNonrecurringItems2Return onAssets.Av ragTotalAssts㊀㊀㊀20042003$149,260$149,
76010.38%—----------------------=
12.67%$$1,437,636$1,182,110N tSales㊀3TotalAssetTurnover=Average TotalAssets.2003$1,589,150$1,294,966$1,437,636$1,182,1102004TotalAsset
4.DuPont Analysis:Return onNet ProfitTurnoverAssetsMargin
200410.42*
9.39%
1.
11200312.72*
11.56%
1.10Rounded causesthe differencefrom the
10.38%and
12.67%computed inpart
2.
5.20042003Operating income$1,589,150Net sales$1,294,966651,390Less:Cost ofproduct soldResearch466,250and developmentexpenses135,314General andselling113,100526,680Operating income446,110$275,766$269,506〃.Operating IncomeOperatingTIncome Margin=---------------------------------------N tSales㊀20042003$275,766$269,506$1,589,150$1,294,966Operating ncom八八.工㊀
6.AReturn onOperating Assets=----------------------------------------------------------Average Operating Assets20042003$1，589,150$269,506$1,411,686$1,159,
66619.53%
23.24%二二Operating AssetTurnover=Average Operating Assets
7.N tSalas㊀20042003$1,589,150$L294,966$1,411,686$1,159,666=
1.13times=
1.12timesper yearperyear
8.DuPont Analysis:Return onAssetsNet Profitx TotalAssetMargin Turnover
200419.61%*=
17.35%
1.
13200323.31%*=
20.81%
1.12^Roundingcauses thedifferencefrom the
19.53%and
23.24%computed inpart
6.
9.20042003Net earningsbefore minorityshareInterest expense$149,260$149,760Earnings beforetax Provision for18,76811,522income taxTax rate1-tax rate263,762271,500interest expensex114,502121,7401-tax rate
43.4%
44.8%Net earningsbefore minorityshare
55.2%
56.6%+interest expensex1-taxrate6,36010,623Long-term debt+equity Return oninvestment159,883156,1201,019,420933,
23215.7%
16.7%Net Sales10ReturnonCommonEquity=Average Operating Assets.20042003$138,204$137,110$810,292$720,
53017.06%
19.03%二二d.Profits inrelation tosales,assets,and equityhave alldeclined.Turnover hasremained stable.Overall,although absoluteprofits haveincreased in2004,compared with2003,the profitabilityratios showadecline.PROBLEM8-6Net IncomeBefore MinorityShareof EarningsandNonrecurringItemsa.
1.Net ProfitMargin=Net Sales200420032002$97,051$51,419$45,101$1,600,000$1,300,000$1,200,000=
6.07%=
3.96%=
3.76%Net IncomeBeforeMinorityShare ofEarningsandNonrecurringItem
2.ReturnonAssetsAv ragTotalAssets㊀㊀200420032002$97,051$51,419$
45101、$1,440,600$1,220,000$1,180,000=
6.04%=
4.21%=
3.82%Nat Sales
3.TotalAssetTurnover=Average TotalAssets200420032002$1,600,000$1300,000$1,200,000$1,440,600$1,220,000$1,180,000=
1.11times peryear=
1.07times=
1.02timesper yearperyear
4.DuPont AnalysisReturnonAssets二TotalAsset2004:
6.74%=NetProfitMargin XTurnover2003:
4.24%=
6.07%
1.11timesX2002:
3.84%=
3.96%
1.07timesX
3.76%*
1.02timesXOperating Income5Operating IncomeMargin.N tSales㊀2004$1,600,20032002$1,200,2Net sales000000$1,300,000Less:Material andmanufacturingcosts ofproducts sold740,000624,000576,000Research anddevelopment Generaland90,00078,00071,400600,000500,500465,000selling1,430,0001,202,5001,112,4001Operating income170,00097,50087,6001Dividend by
2010.63%
7.50%
7.30%ReturnonOperatingAssets=
6.Operating IncomeAvragOpratingAssets㊀㊀㊀200420032002$170,000$97,500$87,000Operating Income_________$1,390,200$1,160,000$1,090,000Average OperatingIncome
12.23%
8.41%
7.98%OperatingAssetTurnover=
7.NtSalas㊀Average OperatingAssets2004$1,600,2003$1,300,2002$1,200,000$1,390,000$1,160,000$1,090,_______Net Sales_____________200000000Average OperatingAssets
1.15times
1.12times
1.10times8DuPont Analysiswith operatingratios.ReturnonTotal AssetNetProfit MarginAssetsx Turnover
10.63%2004:
12.22%*=x
1.
157.50%2003:
8.40%*=x
1.
127.30%2002:
8.03%=x
1.10Rounding differencefromthe
12.23%,
8.41%,and
8.04%computed in
6.NetIncomeBeforeMinorityShare ofEarningsandNonrecurringIterns+[Interest Expensex1-Tax Rate]ReturnonInvestment二---------------------------------------AverageLong-Term Liabilities+EquityEstimated taxrate:2004200320021Provisionforincome taxes$62,049$35,731$32,6592Earnings beforeincome taxesandMinority equity$159,100$87,150$77,7601dividedby
239.00%
41.00%42,00%
61.00%
59.00%
58.00%1-taxrate3Interest expensex1-taxrate$19,000x
6.00%11,59010,738$18,200x
59.00%QQQQ$17,040x
58.00%y,OOO97,05151,41945,1014Earnings beforeminority equity108,64162,15754,9843plus4A211,100212,800214,0005Total long-term debt811,200790,100770,0006Total stockholdersequity1,022,3001,002,900984,0005plus6B
10.63%
6.20%
5.59%A dividedby BNetIncomeBeforeNonrecurringIterns-
10.Dividends onRedeemable PreferredStockReturn onTotalEquity=Average TotalEquity200420032002Net incomeetc.$86,851$42,919$37,001Average totalequity$811,200$790,100$770,000b.All ratioscomputed indicatea significantimprovement Iprofitability.。
个人认证
优秀文档
获得点赞 0
