1. Enter the data from the table in the case at the end of chapter 10 into
Excel. Calculate the following:
Return on Equity (ROE)
Return on Assets (ROA)
Profit Margin (MGN)
Total Asset Turnover
Leverage
Be sure that you (1) Put the title of your table in the first row,
(2) Put the name of the variable, e. g., Net Profit, in the second row,
and (3) put the source of the data, e. g., Given or Net Profit / Net
Worth, in the third row. Add borders. For the title and labels, e. g.,
Net Profits, align by centering across the section, centering vertically,
and wraping the text.
2. Use Excel to graph net profit and total assets. (Adjust total
assets; multiply total assets by .1 and graph this product rather than
total assets unadjusted. Before you use the chart wizard, array total
assets from lowest to highest.) Be sure to give your graph a title.
3. Copy and paste the tables you derived in parts 2 and 3 of this
assignment into a word document and answer the next 2 questions in the
word document.
4. Using your graph, does net profit appear to increase with size as
measured by assets?
5. Examine the row labeled "Profit (Assets)" in your table. Do these
results show that net profit is related to size as measured by total assets?
Why or why not?
E-mail your word document (with the excel tables pasted into the word
document) to me as an attachment before 5 p. m. Thursday
(4/20/00).