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

question 107

Essay

A company reported net income for Year 1 of $98,000 and $106,000 for Year 2. It also reported net sales of $735,000 in Year 1 and $798,000 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 1and Year 2. Comment on the results.

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Definitions:

Right from Wrong

The moral cognitive ability to distinguish between ethical and unethical actions, behaviors, or decisions.

United States

A country located primarily in North America consisting of 50 states and is a federal republic.

Parental Sensitivity

The ability of a parent to perceive and interpret accurately the needs, desires, and signals of their child and to respond appropriately.

Difficult Family Conditions

Situations or environments within families that pose challenges to its members, often affecting their emotional, physical, and mental well-being.