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Use the Information for Purrfect Pets Below to Calculate Each

Question 84

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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.
 December 31.2007 December 31.2008 Total Assets $187,600 Total Assets $239,300 Contributed Capital 80,100 Contributed Capital 83,200 Retained Earnings 27,700 Retained Earnings 74,900 During the period 1/1/07 to 12/31/07 During the period 1/1/07 to 12/31/08 Sales Revenue $163,400 Sales Revenue $183,500 Expenses 116,200 Expenses 133,200\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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