Use the Information for Purrfect Pets Below to Calculate Each

question 43

Essay

Use the information for Purrfect Pets below to calculate each of the required numbers.Assume that expenses include taxes and the company has no other sources of revenue.
A.Determine the debt-to-assets ratio for the company as of December 31,2007 and December 31,2008.Compare and interpret the results.
B.Determine the asset turnover ratio for the company during the year 2008.
C.
$\begin{array}{lrlr}\text { December } 31.2007&&\text { December } 31.2008\\\hline\text { Total Assets } & \$ 187,600 & \text { Total Assets } & \$ 239,300 \\\text { Contributed Capital } & 80,100 & \text { Contributed Capital } & 83,200 \\\text { Retained Earnings } & 27,700 & \text { Retained Earnings } & 74,900\\\\\text { During the period } 1 / 1 / 07 \text { to } 12 / 31 / 07&&\text { During the period } 1 / 1 / 07 \text { to } 12 / 31 / 08\\\hline\text { Sales Revenue } & \$ 163,400 & \text { Sales Revenue } & \$ 183,500 \\\text { Expenses } & 116,200 & \text { Expenses } & 133,200\end{array}$
C.Determine the net income for the company for 2007 and 2008.Compare and interpret the results.
D.Determine the net profit margin ratio for the company for 2007 and 2008.Explain what these calculations indicate in light of your answer to part

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Definitions:

Acreage Allotment Programs

A policy mechanism aimed at controlling the production of certain crops by allocating a specific acreage for their cultivation to manage supply and stabilize or improve prices.

Farmland

Arable land used for the purpose of growing crops and rearing animals.

Farm Incomes

The earnings from agricultural activities, considered the totality of revenues minus costs for those engaged in farming.

Farm Prices

refer to the prices of agricultural products at the farm level, influenced by factors such as supply, demand, and agricultural policies.