Brief Exercise 4-16 (Static) Profitability ratios (LO4-10] The 2021 income statement for Anderson TV and Appliance reported net sales of $420,000 and net income of $65,000. Average total assets for 2021 was $800,000. Shareholders' equity at the beginning of the year was $500,000, and $20,000 was paid to shareholders as dividends. There were no other shareholders' equity transactions that occurred during the year. Calculate the profit margin on sales, return on assets, and return on equity for 2021. Answer is complete but not entirely correct. Profit Margin (%) 1 Choose Denominator: Choose Numerator: Net income $ 65,000 Profit Margin Profit Margin 1 Net sales = $ 420.000 = 15.48% Return on Assets (%) 1 Choose Denominator: Return on Assets Choose Numerator: Net income 65,000 Average total assets = Return on assets 800,000 8.125% Return on Equity Choose Numerator: Net income 65,000 Return on Shareholders' Equity (%) Choose Denominator: Average shareholders' equity $ 500,000 X = 1 = Return on equity 13.00%