Barr Company had total assets of $320,000 in 20x7, $340,000 in 20x8, and $380,000 in 20x9. Its
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Barr Company had total assets of $320,000 in 20x7, $340,000 in 20x8, and $380,000 in 20x9. Its debt to equity ratio was .67 times in all three years. In 20x8, Barr had net income of $38,556 on revenues of $612,000. In 20x9, it had net income of $49,476 on revenues of $798,000. Compute the profit margin, asset turnover, return on assets, and return on equity for 20x8 and 20x9. Comment on the apparent cause of the increase or decrease in profitability. (Round the percentages and other ratios to one decimal place.)
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Managerial Accounting
ISBN: 9780538742801
11th Edition
Authors: Susan V. Crosson, Belverd E. Needles
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