A Company Reported Net Income for Year 1 of $98,000

question 147

Essay

A company reported net income for Year 1 of $98,000 and $106,000 for Year 2. It also reported net sales of $835,000 in Year 1 and $918,000 in Year 2. The company's average total assets in Year 1 were $1,850,000 and $1,720,000 in Year 2. Calculate the company's profit margin, total asset turnover and return on total assets for Year 1 and Year 2. Comment on the results.

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Definitions:

Cost Reduction

Strategies or actions taken by a company to decrease its expenses and improve profitability.

On-The-Job Training

A hands-on method of teaching the skills, knowledge, and competencies needed for employees to perform a specific job within the workplace.

Most Widely Used

A phrase indicating the common acceptance or popularity of a product, method, or practice across a wide range of users or applications.

Training Method

Specific approach or technique used to enhance the skills, knowledge, and competencies of employees to improve their performance and efficiency in their job roles.