Halifax Company Had Net Income of $37,843 in Year 1

question 211

Essay

Halifax Company had net income of $37,843 in Year 1 and $43,876 in Year 2.Its net sales were $319,483 in Year 1 and $305,415 in Year 2.Its average total assets in Year 1 were $334,890 and $356,132 in Year 2.Calculate the profit margin,total asset turnover,and return on total assets for both years.Comment on the results.

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Definitions:

Audience Effect

The influence that the presence of others has on an individual's performance or behavior.

Drive Theory

A psychological framework suggesting that motivation arises from biological needs that drive behavior to satisfy them.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically showing improved performance on simple or well-rehearsed tasks.

Social Presence

The degree to which a person feels that another person, through mediated communication, appears to be physically present.