Below are selected ratios for Manufacturers Corporation. Use this information answer the following questions.$\begin{array}{llrr}
&\text { Year } 1&\text { Year } 2&\text { Year } 3\
\text { 1. Net operating asset turnover } & 1.4 & 1.31 & 1.25 \
\text { 2. Inventory turnover } & 5.6 & 5.0 & 4.6 \
\text { 3. Accounts receivable turnover } & 12.1 & 11.9 & 12.1 \
\text { 4. Fixed assets turnover } & 1.3 & 1.29 & 1.29 \
\text { 5. Net operating profit margin } & 4.5 \% & 4.6 \% & 4.8 \% \
\text { 6. Net operating assets/equity } & 2.10 & 1.98 & 1.77 \
\text { 7. EBIT/revenues } & 8.9 \% & 8.6 \% & 8.6 \% \
\text { 8. Gross margin } & 20.1 \% & 19.9 \% & 19.8 \% \
\text { 9. Income tax rate } & 35 \% & 35 \% & 35 \%
\end{array}$
a. Calculate return on net operating assets for all three years. Identify reasons for any changes.
b. Calculate return on equity for all three years. Comment on changes.

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The Answer of Below are selected ratios for Manufacturers Corporation. Use this information answer the following questions.$\begin{array}{llrr}
&\text { Year } 1&\text { Year } 2&\text { Year } 3\
\text { 1. Net operating asset turnover } & 1.4 & 1.31 & 1.25 \
\text { 2. Inventory turnover } & 5.6 & 5.0 & 4.6 \
\text { 3. Accounts receivable turnover } & 12.1 & 11.9 & 12.1 \
\text { 4. Fixed assets turnover } & 1.3 & 1.29 & 1.29 \
\text { 5. Net operating profit margin } & 4.5 \% & 4.6 \% & 4.8 \% \
\text { 6. Net operating assets/equity } & 2.10 & 1.98 & 1.77 \
\text { 7. EBIT/revenues } & 8.9 \% & 8.6 \% & 8.6 \% \
\text { 8. Gross margin } & 20.1 \% & 19.9 \% & 19.8 \% \
\text { 9. Income tax rate } & 35 \% & 35 \% & 35 \%
\end{array}$
a. Calculate return on net operating assets for all three years. Identify reasons for any changes.
b. Calculate return on equity for all three years. Comment on changes.

Below Are Selected Ratios for Manufacturers Corporation A Calculate Return on Net Operating Assets for All Three