Grand Canyon ACC 486 Module 5 Homework 2016 - Profitability Ratios

Details:
Complete Case 8-4 and Case 8-7 in the Gibson text using Excel. (Label all work.)

APA format is not required, but solid academic writing is expected.
CASE 8-4 CERTIFIED ORGANIC  
Whole Foods Market, Inc. included these statements in its 2010 annual report.*  
a. Compute the following for 2010 and 2009:  
  
1. Net profit margin
2. Total asset turnover (use year-end assets) 
3. Return on assets (use year-end assets)
4. Operating income margin
5. Return on operating assets (use year-end assets)
6. Sales to fixed assets (use year-end fixed assets)
7. Return on investment   
(use year-end balance sheet accounts) 
8. Return on total equity (use year-end equity) 
9. Gross profit margin 

b. Comment on the trends in (a).  

CASE 8-7 NAME THE INDUSTRY       
With this case, a comparison is made between three firms in different industries using net       
profit margin, total asset turnover and current ratio.       
       
 Net Profit Margin  Total Asset Turnover  Current Ratio  
Firm A 1.67%  3.40 times   1.16  
Firm B 21.48%  1.06 times   2.01  
Firm C  4.44%  1.49 times   1.71  
       
1. Apple   
       
2. Costco Wholesale Corporation
  
3. Target Corporation 

Required
a. Which firm is Firm A? Comment on your reasons.
b. Which firm is Firm B? Comment on your reasons.
c. Which firm is Firm C? Comment on your reasons.