Requirements 013 erce 1. Compute trend percentages for each item for 2013 throug
ID: 2588863 • Letter: R
Question
Requirements 013 erce 1. Compute trend percentages for each item for 2013 through 2016. Use 2012 as the base year and round to the nearest percent. 2. Compute the rate of return on net sales for 2014 through 2016. Explain what this means. 3. Compute asset turnover for 2014 through 2016. Explain what this means. 4. Use DuPont Analysis to compute rate of return on average total assets (ROA) for 2014 through 2016. How does Azul Shipping's return on net sales for 2016 compare with previous years? How does it compare with that of the industry? In the shipping industry. rates above 9% are considered good, and rates above 11% are outstanding. Evaluate Azul Shipping, Inc.'s ROA for 2016, compared with previous years and against an 18% benchmark for the industry. 5. 6. Print DoneExplanation / Answer
2016
2015
2014
2013
2012
sales
1000
501
700
313
302
net income
60
34
21
29
24
total assets
308
268
252
224
206
2016
2015
2014
2013
2012
requirement -1
sales
231%
66%
132%
4%
100%
net income
150%
42%
-13%
21%
100%
total assets
50%
30%
22%
9%
100%
requirement-2
net income
- preferred dividend
/
net sales
= return on sales
2014
21
0
/
700
3.0%
2015
34
0
/
501
6.8%
2016
60
0
/
1000
6.0%
requirement-3
net sales
/
average assets = (opening balance+closing balance)/2
2014
700
/
238
2.941
2015
502
/
260
1.931
2016
1000
/
288
3.472
requirement-4
rate of return on sales
X
Asset turnover
ROA
2014
3.0%
X
2.941
8.824%
2015
6.8%
X
1.931
13.103%
2016
6.0%
X
3.472
20.833%
2016
2015
2014
2013
2012
sales
1000
501
700
313
302
net income
60
34
21
29
24
total assets
308
268
252
224
206
2016
2015
2014
2013
2012
requirement -1
sales
231%
66%
132%
4%
100%
net income
150%
42%
-13%
21%
100%
total assets
50%
30%
22%
9%
100%
requirement-2
net income
- preferred dividend
/
net sales
= return on sales
2014
21
0
/
700
3.0%
2015
34
0
/
501
6.8%
2016
60
0
/
1000
6.0%
requirement-3
net sales
/
average assets = (opening balance+closing balance)/2
2014
700
/
238
2.941
2015
502
/
260
1.931
2016
1000
/
288
3.472
requirement-4
rate of return on sales
X
Asset turnover
ROA
2014
3.0%
X
2.941
8.824%
2015
6.8%
X
1.931
13.103%
2016
6.0%
X
3.472
20.833%
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