5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm Your boss has asked you to calculate the profitability ratios of Randall and Arts Inc. and make comments on its second year performance as compared to its first-year performance. The following shows Randall and Arts Inc.'s income statement for the last two years. The company had assets of $11,750 million in the first year and $18,796 million in the second year. Common equity was equal to $6,250 million in the first year, and the company distributed 100% of its earnings out as doidends during the first and the second years. In addition, the firm did not issue new stock during either year. Randall and Arts Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 6,350 5,000 Operating costs except depreciation and amortization 1,120 1,040 Depreciation and amortization 316 200 Total Operating Costs 1,438 1,240 Operating Income (or EBIT) 4,912 3,760 Less: Interest 491 489 Earings before taxes (EBT) 4,421 3,271 Less Taxes (40%) 1,766 1,308 Net Income 2,653 1,963 Calculate the profitability rates of Randall and Arts Inc in the following table, Convert all calculations to a percentage rounded to two decimal places