Question: 1. If a company has net sales of $8,500,000, net income of $945,000, and total asset turnover of 1.8 times, what is its return on total assets?
2. A review of the notes payable files discovers that three years ago the company reported the entire amount of a payment (principal and interest) on an installment note payable as interest expense. This mistake had a material effect on the amount of income in that year. How should the correction be reported in the current year financial statements(FS)?