3. The following are extracted from the financial statements of Frem, Inc., for 2012, HW Net sales Cost of sales Selling and administrative expenses Other income: Interest Other Earnings before tax and extraordinary credit Provision for income tax Earnings before extraordinary credit Extraordinary credit Total assets Long-term debt Common equity Preferred stock Preferred dividends 1,175 2012 $233,000 (124,000) 2011 $204,000 (110,000) 2010 (95,000) (81,500) (3,700) 100) (3,050) $ 10,400 $ 10,625 (4,800) 5,600 (4,740) 5,885 1,510 $ 5.600 7,395 $202,000 $173,000 $161,000 24,600 123,000 17,400 116,800 4,000 280 4,000 280 15,200 112,800 4,000 200 Required: Compute the following ratios for 2012 and 2011. a. 1. Net profit margin 2. Total asset turnover 3. Return on assets 4. Return on investment 5. Return on total equity 6. Return on common equity 7. Gross profit margin net incom before extraday Credit ings b. Discuss the trend in profitability and identify specific causes for the trend.