Calculate the profitability ratios of Blur Corp. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Operating margin Profit margin Return on total assets Return on common equity Basic earning power Value Year 2 34.17% 21.39% Year 1 58.63% 13.39% 25.18% Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply. If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. An increase in the return on assets ratio implies an increase in the assets a firm owns. If a company issues new common shares but its net income does not increase, return on common equity will increase.

Calculate the profitabitity ratios of Blur Corp. in the following table. Convert all calculations to a percentage rounded to two decimal places. Deosion makern and analysts look dexply into profitebility ratios to identify trends in a compariy's profitability. Prolitability ratios give insights into both the survivability of a company and the benefits that shareholders recerve. Identify which of the foliowing statements are true about profitablity ration. Check all that apply. Profitability rotios help in the analysis of the combined impoct of liquidity ratios, asset manogement rabos, and debt maragement retios on the operating performance of a firm. Your boss has asked you to calculate the profitablity rabos of elur Corp. and make comments on its second-year performance as compared with its firstyear performance. The following shows Biur Corp,'s income statement for the last two years. The company bad assets of $9,400milhon in the first year and $15,037 million in the second year, Comman equity was equal to $5,000 malinen in the first vear, and the company dotributed 100% of its eamings out as ividends during the first and the second years. In addition, the firm did not issue aew stock during either year. Bur Corp. Income Statement For the Year Ending on Decenber 31 (14illioas of dollars)