Net sales, net income, and total asset figures for Vibrant Controls, Inc., for five consecutive years are given below (Vibrant manufactures pollution controls): Annual Amounts (Thousands of Dollars) Year 1 Year 2 Year 4 Year 5 Year 3 $84,250 Net sales $71,500 $79,800 $88,400 $94,700 Net income 3,200 3,650 3,900 4,160 4,790 Total assets 42,500 45,400 48,700 51,000 54,900 Required a. Calculate trend percentages, using Year 1 as the base year. b. Calculate the return on sales for each year. Round trend percentage answers to one decimal place (ex: 0.2345 = 23.5). Trend Percentages Year 1 Year 3 Year 4 Year 5 Year 2 111.6 Net sales 100 ✓ 117.8 ✔ 123.6 ✔ 130 ✓ Net income 100 ✓ 114.1 ✓ 121.9 ✓ Total assets 100 ✓ 106.8 ✔ 114.6 120 ✓ Round answers to 2 decimal places (ex: 0.02345 = 2.35%). Year 1 Year 2 Year 3 Year 4 Return on Sales % x 0% x 0% x 0% x 132.4 ✓ 149.7 ✔ 129.2 ✓ Year 5 0% x

Net sales, net income, and total asset figures for Vibrant Controls, Inc., for five consecutive years are given below (Vibrant manufactures pollution controls): Annual Amounts (Thousands of Dollars) Year 1 Year 2 Year 4 Year 5 Year 3 $84,250 Net sales $71,500 $79,800 $88,400 $94,700 Net income 3,200 3,650 3,900 4,160 4,790 Total assets 42,500 45,400 48,700 51,000 54,900 Required a. Calculate trend percentages, using Year 1 as the base year. b. Calculate the return on sales for each year. Round trend percentage answers to one decimal place (ex: 0.2345 = 23.5). Trend Percentages Year 1 Year 3 Year 4 Year 5 Year 2 111.6 Net sales 100 ✓ 117.8 ✔ 123.6 ✔ 130 ✓ Net income 100 ✓ 114.1 ✓ 121.9 ✓ Total assets 100 ✓ 106.8 ✔ 114.6 120 ✓ Round answers to 2 decimal places (ex: 0.02345 = 2.35%). Year 1 Year 2 Year 3 Year 4 Return on Sales % x 0% x 0% x 0% x 132.4 ✓ 149.7 ✔ 129.2 ✓ Year 5 0% x

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter7: Introduction To Financial Statement Analysis

Section: Chapter Questions

Problem 17E

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Liberty Corporation reported beginning and ending total assets of $25,000 and $22,000, respectively. Its net sales for the year were $18,800. What was Liberty’s asset turnover ratio? 0.75 0.85 0.80 1.25
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