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:

Known Facts

Information or details that have been confirmed to be true through evidence or research.

Proven Correct

Demonstrated to be true or accurate through evidence or logical reasoning.

True

True indicates something that is in accordance with fact or reality, not false or erroneous.

Theories About Mental Disorders

Various concepts and models proposed to understand the causes, development, and treatment of mental health conditions.