Halifax Company had profit of $37,843 in Year 1 and $43,876 in Year 2.Its net sales were $319,483 in Year 1 and $305,415 in Year 2.Its average total assets in Year 1 were $334,890 and $356,132 in Year 2.Calculate the profit margin,total asset turnover,and return on total assets for both years.Comment on the results.
Profit margin,Year 1: $37,843/$319,483 = 11.8%
Profit margin,Year 2: $43,876/$305,415 = 14.4%
Total asset turnover,Year 1: $319,483/$334,890 = .954
Total asset turnover,Year 2: $305,415/$356,132 = .858
Return on total assets,Year 1: $37,843/$334,890 = 11.3%
Return on total assets,Year 2: $43,876/$356,132 = 12.3%

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The Answer of Halifax Company had profit of $37,843 in Year 1 and $43,876 in Year 2.Its net sales were $319,483 in Year 1 and $305,415 in Year 2.Its average total assets in Year 1 were $334,890 and $356,132 in Year 2.Calculate the profit margin,total asset turnover,and return on total assets for both years.Comment on the results.
Profit margin,Year 1: $37,843/$319,483 = 11.8%
Profit margin,Year 2: $43,876/$305,415 = 14.4%
Total asset turnover,Year 1: $319,483/$334,890 = .954
Total asset turnover,Year 2: $305,415/$356,132 = .858
Return on total assets,Year 1: $37,843/$334,890 = 11.3%
Return on total assets,Year 2: $43,876/$356,132 = 12.3%

Halifax Company Had Profit of $37,843 in Year 1 and $43,876