1)	Calcluate the following profitablility ratios:
				2010		2009		Formulas
a)	Percent return on net sales
b)	Percent return on assets employed
i)	What does the percent return on net sales indicate?
ii)	What does the percent return on assets employed indicate?
iii)	What does the change from 2009 to 2010 in the percent return on assets mean for the company?

Newton Inc Statement of Income Revenues Rental Income Total Revenues Cost of Revenues Gross Profit Selling, General and Administrative Expenses Income from operations Other Income (Expense) Interest Expense Interest Income Gain (Loss) from Foreign Cumency Exchange Total Other Income (Expense) Total Income (loss) before Provision for Income Taxes Provision for Income Taxes Net Income 12/31/2010 18,000,000 18,000,000 10,983,333 7,016,667 3,000,000 4,016,667 (16,000) 36,000 20,000 4,036,667 (1,009,167) 3,027,500 12/31/2009 17,650,000 17,650,000 10,502,000 7,148,000 3.000.000 4,148.000 (17,000 36,000 19,000 4,167,000 (1,041,750) 3,125,250