Jahn Company Had the Following Balances in Its General Ledger

question 82

Essay

Jahn Company had the following balances in its general ledger at December 31, 2012:

For the year 2012, Jahn Company's electronic sales registers showed a total cost of goods sold of $480,000. Assuming that a physical count of inventory on December 31, 2012, revealed inventory on hand costing $185,000, complete the following:

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Definitions:

Total Asset Turnover

A ratio calculating how effectively a company utilizes its assets to produce sales income.

Return on Equity

A measure of a corporation's profitability, indicated by the amount of net income returned as a percentage of shareholders equity.

Return on Assets

A financial ratio indicating how efficiently a company uses its assets to generate profit.