Ratio of net sales to assets
The following financial statement data for years ending December 31 for Latchkey
Company are shown below.
|
2014 |
2013 |
|
|
Net sales |
$1,734,000 |
$1,645,000 |
|
Total assets: |
||
|
Beginning of year |
480,000 |
460,000 |
|
End of year |
540,000 |
480,000 |
- Determine the ratio of net sales to assets for 2014 and 2013.
- Does the change in the ratio of net sales to assets from 2013 to 2014 indicate a favorable or an unfavorable trend?