A Company Reported Net Income of $225,000, Net Sales of $2,500,000

question 55

Essay

A company reported net income of $225,000, net sales of $2,500,000, and average total assets of
$2,100,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.

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Definitions:

Strategic Intent

Strategic intent focuses and applies organisational energies on a unifying and compelling goal.

Organise Resources

The process of efficiently and effectively deploying and allocating organizational assets, including financial, human, and material resources.

Allocate Resources

The act of distributing available assets, such as time, money, and manpower, among various projects or departments to achieve organizational goals.

Strategic Management

The formulation, implementation, and evaluation of actions and decisions that will enable an organization to achieve its long-term objectives.