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:

Internet Dating

Internet Dating involves using websites or apps to find romantic or sexual partners by connecting and communicating online.

Heterosexual Women

Women who are sexually attracted to men, with sexuality often discussed in relation to gender, social norms, and rights issues.

Racial Category

A classification of human beings into groups based on physical, social, or cultural characteristics associated with race, often used for demographic purposes.

Out-Of-Wedlock Birth

The birth of a child to parents who are not legally married to each other at the time of the child's birth.