A company had net income of $350,000 in Year 1 and $520,000 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 1 and Year 2. Comment on the results, did the company's performance improve?
What will be an ideal response?
(a) Year 1: $350,000 / $2,500,000 = 14.0%
(b) Year 2: $520,000 / $3,000,000 = 17.3%
(c) The company appears to be more efficient in the use of its assets by generating a higher return in Year 2 than in Year 1.
You might also like to view...
Briefly list the contents of a marketing plan
What will be an ideal response?
The only classifications used for descriptive studies are in the following three categories: (1 ) sales, (2 ) consumer perception, and (3 ) behavior studies
Indicate whether the statement is true or false
Whereas a sales representative can bind its principal to a contract with third persons, a commercial agent may only solicit business.
Answer the following statement true (T) or false (F)
The AP/CD process is closely linked to functions and processes inside and outside the organization.
Answer the following statement true (T) or false (F)