A Company Had Net Income of $450,000 in Year 1

question 22

Essay

A company had net income of $450,000 in Year 1 and $620,000 in Year 2. The company had average total assets of $2,500,000 in Year 1 and $3,000,000 in Year 2. Calculate the return on total assets for Year 1and Year 2. Comment on the results, did the company's performance improve?

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Definitions:

Atrioventricular Node

A part of the heart's electrical system that delays the signal before passing it from the atria to the ventricles, allowing the heart’s chambers time to fill with blood.

Oxygen In Blood

The vital process by which oxygen is transported by red blood cells from the lungs to the rest of the body, supporting cellular respiration.

Hemoglobin

A protein in red blood cells responsible for transporting oxygen from the lungs to the body's tissues and organs.

Bound

Confined, secured, or held within certain limits or under a specific constraint.