The Following Financial Information Was Taken from a Unit Sales

question 8

Short Answer

The following financial information was taken from a Unit Sales Inc.'s accounting records on December 31, 2013. Use this information to determine the items below. $$\begin{array} { l r } \text { Net Sales } & \$ 1,200,000 \\\text { Gross Profit on Sales } & 400,000 \\\text { Net Income Before Income Tax } & 66,000 \\\text { Income Tax Expense } & 21,000 \\\text { Net Income After Income Tax } & 45,500 \\\text { Total Assets } & \$ 800,000\end{array}$$ (1) Rate of return on net sales.
(2) Rate of return on total assets.
(3) Asset turnover.

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Definitions:

Price Escalation

An increase in the price of products or services over time, often due to factors such as inflation or increased costs of materials.

Firm-Fixed-Price

A type of contract where the price agreed upon is not subject to any adjustments based on the cost experience of the supplier or service provider.

Substantial Chance

A significant opportunity or probability of occurrences that can have considerable effects or outcomes.

Purchasing Manager Indexes

Economic indicators derived from monthly surveys of private sector companies, providing insight into the economic health of the manufacturing sector.