The Barron Company had the following results for the period 1998–

2003:

Barron’s management was concerned about the declining return on assets.

a. Calculate the total asset turnover for Barron Company for each year.

b. Explain the trend in return on assets using the trends in net profit margin and asset turnover.

Transcribed Image Text:

Year Net Profit Margin Return on Assets 1998 5% 10% 1999 6% 9% 2000 4% 3.2% 2001 4% 2.8% 2002 4% 3% 2003 5% 3%