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A Company Had Net Income of $45,000, Net Sales of $390,000

question 158

Essay

A company had net income of $45,000, net sales of $390,000, and average total assets of $450,000 for the current year. Calculate the company's profit margin, total asset turnover, and return on total assets.


Definitions:

Prohibited

Forbidden by law, rules, or other forms of authority.

Infringes

The act of violating, breaching, or encroaching upon laws, regulations, contracts, or the rights of others.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with a given set of resources and technology.

Efficiently

The manner of achieving a goal or completing a task with the minimum waste of time and effort.

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