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:

Weakening Immune System

A decrease in the effectiveness of the immune system, which reduces the body's ability to fight off infections and diseases.

Susceptible To Pneumonia

Having an increased vulnerability or tendency to develop pneumonia, an infectious disease affecting the lungs.

Slower Neural Processing

A reduced speed in the cognitive processing of information by the nervous system.

Cardiac Output

The volume of blood pumped by the heart per minute, a critical measure of heart function and overall cardiovascular health.