A company had net income of $45,000, net sales of $390,000, and average total assets of $450,000 for the current year. Calculate the company's profit margin, total asset turnover, and return on total assets.
What will be an ideal response?
| ? | ? | ? |
| Profit margin: $45,000 / $390,000 | = | 11.5% |
| Total asset turnover: $390,000 / $450,000 | = | 0.87 |
| Return on total assets: $45,000 / $450,000 | = | 10.0% |
| ? | ? |
You might also like to view...
Pareto's Law suggests that 80% of a company's revenues or profits are accounted for by 20% of a firm's products or customers
Indicate whether the statement is true or false
The auditor's communication of material weaknesses in internal control for a nonpublic company is:
A. required to enable the auditor to state that the examination has been made in accordance with generally accepted auditing standards. B. required to be included as part of the audit opinion. C. required even though the financial statement audit for private companies does not require an audit of the entity's system of internal control. D. the principle reason for studying and evaluating the system of internal controls.
Indicators of quality data include all of the following except ________
A) providing a tally on each terminated interview and the reason for termination B) item nonresponse occurs infrequently C) all instructions, including skip patterns, are followed D) the answers to unstructured questions are meaningful and complete enough to be coded
General-purpose external financial statements are not primarily intended for
A) management. B) investors. C) suppliers of goods and services. D) lending institutions.