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Module 6 Homework

Module 6 Homework

Q 7) Describe at least two things that could happen within this company that would make it necessary for the controller to dig into the numbers and provide a write up to management. (for instance, the controller might notice that inventory has shrunk by over 50% what might he look for in the numbers and what ratios might he use to check things before alerting management) The first sheet includes the assignment questions. The subsequent sheets include the following: Income Statement, Balance Sheet Retained Earnings, Income Statement per Division 2010, and Income Statement per Division 2009. Use the data in the second, third, fourth, and fifth sheets to answer the questions in the first sheet.

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Module 6 Homework Assignment Use the information given in the green tabs to solve the questions below (answers in yellow, and show formulas used when applicable.) Calcluate the following profitablility 1) ratios: 2010 2009 Formulas Percent return a) on net sales Percent return on assets b) employed 0.18 0.17 Net Profit/Revenue or Sales Net Profit/Assets 1.22 0.84