Following is information about current and projected sales and expenses for Squiggy Company. The companys total assets

Following is information about current and projected sales and expenses for Squiggy Company. The company’s total assets are also given.

a. Calculate the percentage changes in net income that would occur under each projection.
b. Calculate the percentage changes in return on assets, profit margin, and asset turnover that would occur under eachprojection.

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Current Sales $50,000 (10,000) Decrease of 20% S 40,000 (10,000) Increase of 20% $60,000 (10,000) 12,000 $38,000 25,000 Sales Less: Fixed costs Variable costs Net income Total assets 10,000) 2 $30,000 $25,000 $ 22,000 $25.000