Analysis of Denver Furniture Corp. Dissertation Example For Download

Denver Furniture Corp. Student’s Name Institution Denver Furniture Corp. Return on assets measures the earnings of an organization relative to its assets. A calculation of the return on assets of Denver under the current and proposed product line shows the following results:Ratio (Figures in dollars except for ratios) Results without the new product line Results with the new product line Return on assets (ROA) =Net profits/Assets 13,000/100,000=0.13 12,000/100,000=0.12 The profit margin measures the net earnings for each dollar unit of sale made by the company. A calculation of Denver’s profit margin before and after the introduction of the new product by the management shows the following: Ratio (Figures in dollars except for ratios) Results without the new product line Results with the new product line Profit Margin= Net Income/ Sale 13,000/60,000=0.22 12,000/50,000=0.24 The assets turnover is used to evaluate the efficiency of an entity regarding the utilization o...

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