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Calculate the profitability rations of Dernham Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places. A)Year two options:

Calculate the profitability rations of Dernham Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places.
A)Year two options: 88.66%,83.77%,52.19%69.81%
B)Year one options: 47.89%,36.57%,49.37%,28.8%
C)year two options: 9.73%,14.65%,20.38%,12.74%
D) year two options: 47.12%,28.73%38.31%,34.1%
E)year one options: 28.21%17.63%21.16%36.73% image text in transcribed
image text in transcribed
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 Dernham Inc. and make comments on its second-year performance as compared to its first-year performance. The following shows Dernham Inc. 's income statement for the last two years. The company had assets of $8,225 million in the first year and $13,157 million in the second year. Common equity was equal to $4,375 million 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. Dernham Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year1 4,445 3,500 1,120 1,040 140 1,342 1,180 3,103 2,320 186 2,793 2,134 854 1,6761,280 Net Sales Operating costs except depreciation and amortization Depreciation and amortization Total Operating Costs Operating Income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net Income 310 1,117 Calculate the profitability ratios of Dernham Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places

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