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.

Learn to describe and interpret associations in scatterplots and histograms.

Understand how to use scatterplots to predict trends and behaviors in real-world scenarios.

Grasp the importance of correlation in quantifying the strength and direction of relationships between variables.

Recognize the limitations of correlations and the importance of considering linearity and quantitative variables.

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Definitions:

Pressure

The feeling of stressful urgency caused by the need to achieve or perform, often within a limited timeframe.

Imagination

The faculty or action of forming new ideas, images, or concepts not present to the senses.

What-If Questions

Hypothetical queries used to explore potential outcomes or scenarios, often as a problem-solving or creative thinking technique.

Creativity

The capacity to generate unique and novel concepts, or to create something innovative and imaginative.