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3. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case in which sales equal 30,000 units.
In short, net profit is the most comprehensive profitability metric, encompassing all of a business's positive and negative cash flows. A company's total assets can easily be found on the balance sheet. The ROA formula calls for the average total assets, however. Because a company's asset total can vary over time due to the purchase or sale of vehicles, land or equipment, inventory changes, or seasonal sales fluctuations, it is important to find the average total for the period in question.