A Company Had Net Income of $86,000 in Year 1

question 37

Essay

A company had net income of $86,000 in Year 1 and $118,000 in Year 2. Its net sales were
$640,000 in Year 1 and $611,000 in Year 2. Its average total assets in Year 1 were $1,670,000 and
$1,712,000 in Year 2. Calculate the profit margin, total asset turnover and return on total assets for both years. Comment on the results.

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Definitions:

Pronounced

Clearly stated or made known verbally or with a marked degree of distinction and clarity.

Tomb Paintings

Artworks created on the interior walls of tombs, depicting scenes of the afterlife, deities, or daily life, intended to honor and guide the deceased.

Etruscan Women

Women of the ancient Etruscan civilization, known for their relatively high status and freedom compared to women in contemporary Greek and Roman cultures.

Capitoline Wolf

A bronze sculpture depicting a scene from Roman mythology, specifically the she-wolf suckling the future founders of Rome, Romulus and Remus.