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:

Scrotum

The pouch of skin containing the testicles in male mammals.

Testosterone

A primary male sex hormone crucial for the development of male reproductive tissues, as well as promoting secondary sexual characteristics.

Secondary Male Characteristics

Physical changes that occur in males during puberty, such as facial hair, voice deepening, and increased muscle mass, not directly involved in reproduction.

Vas Deferens

A tube that transports sperm from the testicle to the urethra in males.