A Company Had Net Income of $76,000 in 2009 and $88,000

question 9

Essay

A company had net income of $76,000 in 2009 and $88,000 in 2010.Its net sales were $640,000 in 2009 and $611,000 in 2010.Its average total assets in 2009 were $670,000 and $712,000 in 2010.Calculate the profit margin,total asset turnover and return on total assets for both years.Comment on the results.

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Definitions:

Perfecting Security Interest

The legal process by which a secured party establishes a priority claim on a debtor's collateral in case of default.

Attachment

A legal procedure by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor or sold for benefit of the creditor.

Filing

The process of submitting documents to a designated body or authority (such as a court or public office) for official recording and recognition.

Continuation Statements

Documents filed to continue the effectiveness of a UCC financing statement beyond its original expiration date.