A Company Reported Net Income of $275,000, Net Sales of $2,500,000

question 28

Essay

A company reported net income of $275,000, 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.

---

Definitions:

Trial and Error

A problem-solving method involving repeated, varied attempts which are continued until success, or until the agent stops trying.

Centralization Principle

A management approach where decision-making authority is concentrated in the higher levels of an organization.

Fayol's Centralization

A principle proposed by Henri Fayol that advocates for the concentration of decision-making authority at the top levels of an organization.

Historical Perspective

refers to the understanding of the past and how it influences present and future events, trends, or conditions.