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:

Stock Classes

Different types of shares that a company can issue, each of which might have specific rights, privileges, or voting powers.

Capital Gains

The financial gain achieved when the selling price of an asset or investment surpasses its original buying price.

Appreciate

To increase in value or price over time.

Yield

Yield is the income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.