pick one of the ratios discussed in the lecture or the text and provide

an example of how that ratio might fluctuate seasonally. (Points : 5)

Gross profit margin equals gross profit divided by sales. If a
company were to have a strong selling season, say during Christmas,
then its gross profit margin would also go up. So as an example if XYZ
company had sold 100 of a $10 dollar widget for $18 then $1800
compared to $1000 dollars that it cost to make the product. Then the
gross profit would be $800. The profit margin would go up even
higher if during Christmas they sold 1000 widgets.
Barnes Corp's total assets at the end of last year were $415,000,000,
and its net income after taxes was $17,750,000. What was its return
on total assets? (Points : 5)
The return on total assets is calculated below
ROA=Net income+interest expense/Book value of assets
ROA=$17,500,000/415,000,000
ROA=0.04:1
This means that company is pulling in a 4 to 1 ratio for each dollar of
assets.
As of December 31, 2015, Michael Corp's current assets were
$2,000,000. Its current liabilities were $2,000,000. Its sales for 2015
were $50,000,000. As of December 31, 2016, Michael Corp's current
assets were $3,000,000. Its current liabilities were $3,000,000. Its
sales for 2016 were $65,000,000. Management has asked you to
comment on these numbers. (Points : 10)
The Sales has increased by $15,000,000 from $50,000,000 to
$65,000,000 in 2016 and the Current Assets has increased from
$2,000,000 to $3,000,000. The Company has utilized its selling power
in applying its current assets in generating sales, if there is a chance of
credit sales, which can influence the Cash flow of the Company, then
the only worry is that if the Companys' major revenue is tied up with
Debtors, and there could be some setback for the Company in making
disbursements towards its Creditors if they cannot collect. The Current
Assets are equal to the current liabilities so there should not be a
problem.