Micron Company Had Net Income for Year 1 of $47,950

question 13

Essay

Micron Company had net income for Year 1 of $47,950 and $53,425 in Year 2.The company had net sales of $363,250 in Year 1 and $392,750 in Year 2.The company's average total assets in Year 1 were $942,550 and $877,560 in Year 2.Calculate Micron'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:

Ending Inventory

The total value of all the goods remaining unsold at the end of an accounting period.

Cost of Goods Sold

Costs directly connected with the manufacture of goods a company sells, including both materials and workforce expenses.

Beginning Inventory

The value of all the inventory held by a business at the start of an accounting period.

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts.