At year end, Canzoneri Company had total assets of 640,000 in (20 times 0,680,000) in (20 mathrm{x}
Question:
At year end, Canzoneri Company had total assets of 640,000 in \(20 \times 0,680,000\) in \(20 \mathrm{x} 1\), and 760,000 LO 6 Profitability Analysis in \(20 \times 2\). Its debt to equity ratio was .67 in all three years. In \(20 \times 1\), the company earned a net profit of 77,112 on revenues of \(1,224,000\). In \(20 \times 2\), the company earned a net profit of 98,952 on revenues of \(1,596,000\). Calculate the profit margin, asset turnover, return on assets, and return on equity for \(20 \times 1\) and \(20 \times 2\). Comment on the apparent cause of the increase or decrease in profitability. (Round the percentages and other ratios to one decimal place.)
Step by Step Answer:
Financial Accounting A Global Approach
ISBN: 9780395839867
1st Edition
Authors: Sidney J. Gray, Belverd E. Needles