Presented below are summary financial data from the 2017 annual report of Natalie Company. Using the ratio definitions, calculate the following financial ratios: unlevered return on sales, asset turnover, financial leverage, and common equity share of operating earnings. Evaluate the trend in the company’s return on equity. Assume an effective income tax rate of 30 percent.

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(amounts in thousands) Balance sheet Total assets Shareholders' equity Income statement 2017 2016 $28,138 $30,435 11,208 10,202 26,000 28,000 Net sales Interest expense 349 310 Net income after taxes. 4,516 4,418