The 2014 annual report of Trocchi Inc. contains the following information (in thousands):

Instructions
(a) Calculate the following ratios for Trocchi Inc. for 2014:
1. Asset turnover ratio
2. Rate of return on assets
3. Profit margin on sales
(b) How can the asset turnover ratio be used to calculate the rate of return on assets?
(c) Briefly comment on the results for the ratios calculated in part (a).

Transcribed Image Text:

Total assets Total liabilities Consolidated sales Net income Dec. 31, 2014 $1,071,348 626,178 3,374,463 Dec. 31, 2013 $ 787,167 410,044 2,443,592 66,234 49,062