Handley Grocery Corporation reported the following information in its comparative financial statements for the fiscal year ended

Question:

Handley Grocery Corporation reported the following information in its comparative financial statements for the fiscal year ended January 31, 2021: 


Requirements

1. Compute the net profit margin ratio for the years ended January 31, 2021, and 2020. Did it improve or worsen in 2021?

2. Compute asset turnover for the years ended January 31, 2021, and 2020. Did it improve or worsen in 2021?

3. Compute return on assets for the years ended January 31, 2021, and 2020. Did it improve or worsen in 2021? Which component—net profit margin ratio or asset turnover—was mostly responsible for the change in the company’s return on assets?

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Financial Accounting

ISBN: 9780136899037

13th Edition

Authors: C. William Thomas, Wendy M Tietz

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