Following are selected financial data in thousands of dollars for

the Hunter Corporation.
2012 2011
Current assets $ 500 $400
Fixed assets, net 700 600
Total assets 1,200 1,000
Current liabilities 300 200
Long-term debt 200 200
Common equity 700 600
Total liabilities and equity $1,200 $1,000
Net sales $1,500 $1,200
Total expenses _1,390 _1,100
Net income 110 100.
a. Calculate Hunter’s rate of return on total assets in 2012 and
in 2011. Did the ratio improve or worsen?
b. Diagram the expanded Du Point system for Hunter for 2012.
Insert the appropriate dollar amounts wherever possible.
c. Use the Du Pont system to calculate the return on assets for
the two years, and determine why they changed.
I need some help please!!

a. To calculate Hunter Corporation's rate of return on total assets, you need to divide the net income by the total assets. The formula is as follows:

Rate of return on total assets = (Net Income / Total Assets) * 100

For 2012:
Rate of return on total assets = (110 / 1200) * 100 = 9.17%

For 2011:
Rate of return on total assets = (100 / 1000) * 100 = 10%

Comparing the two ratios, you can see that the rate of return on total assets has worsened from 10% in 2011 to 9.17% in 2012.

b. The expanded Du Pont system includes three components: the net profit margin, total asset turnover, and the equity multiplier.

Net profit margin = (Net Income / Net Sales) * 100
Total asset turnover = Net Sales / Average Total Assets
Equity multiplier = Total Assets / Common Equity

For 2012, using the financial data provided:
Net profit margin = (110 / 1500) * 100 = 7.33%
Total asset turnover = 1500 / ((1200 + 1000) / 2) = 1.25
Equity multiplier = 1200 / 700 = 1.71

c. The return on assets (ROA) can be calculated using the Du Pont system formula: ROA = Net Profit Margin * Total Asset Turnover

For 2012:
ROA = 7.33% * 1.25 = 9.16%

For 2011:
ROA = Net Profit Margin * Total Asset Turnover = 10% * 1.2 = 12%

The ROA decreased from 12% in 2011 to 9.16% in 2012. This change in ROA can be attributed to the decrease in net profit margin and total asset turnover. The net profit margin decreased from 10% to 7.33% and the total asset turnover decreased from 1.2 to 1.25. These changes indicate lower profitability and fewer sales generated from the assets in 2012 compared to 2011.