Barr Company had total assets of $320,000 in 2010, $340,000 in 2011, and $380,000 in 2012. Its
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Barr Company had total assets of $320,000 in 2010, $340,000 in 2011, and $380,000 in 2012. Its debts to equity ratio was 0.67 times in all three years. In 2011, Barr had net income of $38,556 on revenues of $612,000. In 2012, it has net income of $49,476 on revenues of $798,000. Compute the profit margin, asset turnover, return on assets, and return on equity for 2011 and 2012. Comment on the appear cause of the increase or decrease in profitability.
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