Use the information for Purrfect Pets below to calculate each of the required nu

Question

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. Determine the debt-to-assets ratio for the company as of December 31. 2011 and December 31, 2012. (Round your answers to 2 decimal places. Omit the "%" sign in your response.) Determine the asset turnover ratio for the company during the year 2012. (Round your answer to 2 decimal places.) Determine the net income for the company for 2011 and 2012. (Omit the "$" sign in your response. Determine the net profit margin ratio for the company for 2011 and 2012. (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

a)for the year 2012----->(259300-86200-63900)/259300 =0.421 ,whereas for the year 2011---->(203600-64100-44700)/203600=0.465 b)asset turnover ratio =sales/(net avg assets) =195500/((259300+203600)/2) =0.84 c)net income is also known as net profit,hence for 2011->165400-107200=58200 and for the year 2012->195500-140200=55300 d)the formula for Profit margin =net profit/net sales ,for year 2011 ->(165400-107200)/165400=0.35, for the year 2012 ->(195500-140200)/195500 =0.28

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