Assignment 11, Economics 103

Spring 2000, Chico State University




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).