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:

Ozone Depleting CFCs

Chlorofluorocarbons that contribute to the thinning and damage of the Earth's ozone layer.

Corporate Social Responsibility

A corporate strategy that involves incorporating ecological and social considerations into business practices and stakeholder engagements.

Obstructionist Strategy

A strategy where a business or individual actively resists or tries to block proposed changes or developments.

Utilitarian View

A philosophical approach that emphasizes the greatest good for the greatest number, often used in ethical decision-making.