Following are selected financial data in thousand of dollars for the Hunter Corp
ID: 2676672 • Letter: F
Question
Following are selected financial data in thousand of dollars for theHunter Corporation.
2012 2011
current asset $500 $400
fixed assets, net 700 600
total assets 1,200 1,000
current liabilities 300 200
long term debt 200 200
common equity $1,200 $1,000
net sale $1,500 $1,200
total expenses -1,390 -1,100
net income 110 110
a. calculate unters rate of return on total assets in 2012 and in 2011.
did the ratio improve or worsen?
b. diagram the expand Du Pont system for Hunter for 2012. insert
the apporpriate dollar amounts where ever possible.
c. use the DU pont system to calculate the return on assets for the two years and determine why they changed.
Explanation / Answer
Return on assets (2012) = Net income/average total assets = 110/[(1200+1000)/2] = 10%.