Consecutive five-year balance sheets and income statements of the Mary Lou Szabo Corporation are as follows:

MARY LOU SZABO CORPORATION Balance Sheets December 31, 1997, through December 31, 2001

(Dollars in thousands) 2001 2000 1999 1998 1997 Assets Current assets:

Cash $ 24,000 $ 25,000 $ 26,000 $ 24,000 $ 26,000 Accounts receivable, net 120,000 122,000 128,000 129,000 130,000 Inventories 135,000 138,000 141,000 140,000 137,000 Total current assets 279,000 285,000 295,000 293,000 293,000 Property, plant and equipment, net 500,000 491,000 485,000 479,000 470,000 Goodwill 80,000 85,000 90,000 95,000 100,000 Total assets $859,000 $861,000 $870,000 $867,000 $863,000 Liabilities and Stockholders’ Equity Current liabilities:

Accounts payable $180,000 $181,000 $181,500 $183,000 $184,000 Income taxes 14,000 14,500 14,000 12,000 12,500 Total current liabilities 194,000 195,500 195,500 195,000 196,500 Long-term debt 65,000 67,500 79,500 82,000 107,500 Redeemable preferred stock 80,000 80,000 80,000 80,000 —

Total liabilities 339,000 343,000 355,000 357,000 304,000 Stockholders’ equity:

Preferred stock 70,000 70,000 70,000 70,000 120,000 Common stock 350,000 350,000 350,000 350,000 350,000 Paid-in capital in excess of par, common stock 15,000 15,000 15,000 15,000 15,000 Retained earnings 85,000 83,000 80,000 75,000 74,000 Total stockholders’ equity 520,000 518,000 515,000 510,000 559,000 Total liabilities and stockholders’ equity $859,000 $861,000 $870,000 $867,000 $863,000 MARY LOU SZABO CORPORATION Statement of Earnings Years Ended December 31, 1997–2001 (Dollars in thousands) 2001 2000 1999 1998 1997 Net sales $980,000 $960,000 $940,000 $900,000 $880,000 Cost of goods sold 625,000 616,000 607,000 580,000 566,000 Gross profit 355,000 344,000 333,000 320,000 314,000 Selling and administrative expense (240,000) (239,000) (238,000) (239,000) (235,000)
Interest expense (6,500) (6,700) (8,000) (8,100) (11,000)
Earnings from continuing operations before income taxes 108,500 98,300 87,000 72,900 68,000 Income taxes 35,800 33,400 29,200 21,700 23,100 Earnings from continuing operations 72,700 64,900 57,800 51,200 44,900 Extraordinary loss, net of taxes — — — — (30,000)
Net earnings $ 72,700 $ 64,900 $ 57,800 $ 51,200 $ 14,900 Earnings (loss) per share:
Continuing operations $ 2.00 $ 1.80 $ 1.62 $ 1.46 $ 1.28 Extraordinary loss — — — — (.85)
Net earnings per share $ 2.00 $ 1.80 $ 1.62 $ 1.46 $ .43 Note: Dividends on preferred stock were as follows: Redeemable preferred stock Preferred stock 1998–2001 $6,400 1998–2001 $6,300 1997 $10,800 Required

a. Compute the following for the years ended December 31, 1997–2001:
1. Net profit margin 2. Total asset turnover 3. Return on assets 4. DuPont return on assets 5. Operating income margin 6. Operating asset turnover 7. Return on operating assets 8. DuPont return on operating assets 9. Sales to fixed assets 10. Return on investment 11. Return on total equity 12. Return on common equity 13. Gross profit margin

b. Briefly comment on profitability and trends indicated in profitability.
Also comment on the difference in results between using the average balance sheet figures and year-end figures.