Define the return on total assets and explain how it is used to measure a company's financial performance.
What will be an ideal response?
The return on total assets is calculated by dividing net income by average total assets. It can be computed by multiplying the profit margin ratio and total asset turnover. The return on total assets reflects a company's ability to use its assets to make a profit. It can also be used to assess a company's performance compared to competitors.
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Most large companies consist of four organizational levels: the corporate level, the ________, the business unit level, and the product level
A) board of director level B) major stakeholder level C) management team level D) division level E) strategic level
Which of the following statements is true of sale of collateral?
A. If the creditor has a security interest in consumer goods and the debtor has paid 60 percent or more of the purchase price, the creditor must sell the repossessed collateral. B. The creditor must sell the collateral unless the consumer orally objects to the sale, otherwise, the creditor may keep the collateral in satisfaction of the debt. C. In disposing of the collateral, the creditor must use a commercially reasonable method to produce the greatest benefit to himself and not to the debtor. D. If less than 80 percent of the purchase price has been paid, the creditor may propose to the debtor that the creditor keep the collateral in satisfaction of the debt.
In order to improve his performance and motivation, Sindhar is evaluated by his direct manager, customers, subordinates, and peers. This is an example of a(n) ________ appraisal.
A. relationship B. results C. objective D. 360-degree E. collaborative
Neef Corporation has provided the following financial data from its balance sheet and income statement: Year 2Year 1Total assets$1,302,000 $1,330,000 Total stockholders' equity$885,000 $880,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,420,000 Cost of goods sold 890,000 Gross margin 530,000 Operating expenses 493,000 Net operating income 37,000 Interest expense 17,000 Net income before taxes 20,000 Income taxes (35%) 7,000 Net income$ 13,000 The company's net profit margin percentage for Year 2 is closest to:
A. 2.6% B. 1.4% C. 0.9% D. 37.3%