Compute return on sales (ROS), asset turnover (AT), return on assets (ROA), leverage (L), return on common stockholders€™ equity (ROE), gross profit (GP), operating income percentage (OI), and earnings per share (EPS), to measure the ability to earn profits for Cavalier Decor, Inc., whose comparative income statements follow (use DuPont analysis for ROA and ROE and round each component ratio to three decimals; for other ratio computations, round to two decimals):

Additional data:

Did the company€™s operating performance improve or deteriorate during2012?

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Cavalier Decor, Inc. Comparative Income Statements Years Ended December 31, 2012 and 2011 2012 2011 Net sales Cost of goods sold Gross profit Selling and general expenses Income from operations Interest expense Income before income tax Income tax expense Net income $350,000 $290,000 148,000 175,000142,000 94,000 48,000 10,000 38,000 13,000 S 25,000 175,000 100,000 75,000 13,000 62,000 22,000 S 40,000 2012 2011 2010 Total assets. $400,000 $396,000 $394,000 Common stockholders' equityS149,000 $140,000 $131,000 Preferred dividends$ 11,000 9,000$ 7,000 Average common shares outstanding during the year ... 20,000 15,000 5,000