10. Profitability ratios Neha has been asked to calculate the profitability ratios of Green Caterpillar Garden Supplies, Inc, and make comments on its secondyear performance as compared to its first-year performance. The following shows Green Caterpilar's income statement for the last two years. The company had assets of $11,750,000 in the first year and $18,796,000 in the second year. Common equity was equal to $6,250,000 in the first year, 100% of earnings were paid out as dividends in the first year, and the firm did not issue new stock in the second year. Given the income stotements, calculate the profitabilky ratios of Greon Caterpullar Garden Supplies, Inc. Which of the following stistements are true about profitability ratios? Check all that apply. If a company has a net protit margin of 10%, it means that the company earned a net income of 50,10 for each doliar of sales. If a comparyy's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes: An increase in a company's earnings means that the net profit margin is increasing. If a company issues new common shares but its net income does not increase, return on common equity will increase