For 2021 and 2020, calculate return on sales, asset turnover, return on assets (ROA), leverage, return on common stockholders’ equity (ROE), gross profit percentage, operating income percentage, and earnings per share to measure the ability to earn profits for Durham Decor, Inc., whose comparative income statements follow. Perform a DuPont Analysis for ROA and ROE, and round each component ratio to three decimal places; for other ratio computations, round to two decimal places.

Additional data:

Did the company’s operating performance improve or deteriorate during 2021?

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1 2 A1 Durham Decor, Inc. Comparative Income Statements Years Ended December 31, 2021 and 2020 3 Net sales 4 Cost of goods sold 5 Gross profit 6 Selling and general expenses Income from operations 7 8 Interest expense 9 Income before income tax 10 Income tax expense 11 Net income 12 2021 $ 250,000 123,000 127,000 55,000 72,000 14,000 58,000 20,000 $ 38,000 2020 $ 199,000 102,000 97,000 51,000 $ 46,000 18,000 28,000 10,000 18,000