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Comparative data for Albers Automotive for the two-year period 2019-2020 are presented belo Income Statement Data 2020 2019 Net Sales $1,500,000 $1,200,000 Cost of Goods
Comparative data for Albers Automotive for the two-year period 2019-2020 are presented belo Income Statement Data 2020 2019 Net Sales $1,500,000 $1,200,000 Cost of Goods Sold 934.000 741,000 $566,000 $ 459,000 376,000 277,000 Gross Profit Operating Expense Operating Income Other Expense interest) Earnings Before Income Tax $ 190,000 $ 182,000 15,000 12,000 $ 175,000 $ 170,000 Income Taxes 66,000 71.000 Net Income $ 109,000 $ 99,000 48,000 42.000 Dividends Paid Net Increase in Retained Earnings $ 61,000 $ 57,000 Balance Sheet Data Assets 2020 2019 Cash $ 30,000 $10,000 Receivables (net) 130,000 90,000 Inventory 170,000 113,000 650,000 547,000 Land Buildings, and Equipment (net) Intangible Assets 20,000 20,000 $1.000.000 $780.000 Liabilities and Stackholders' Equity 2020 2019 $40,000 $ 100,000 50,000 11,000 Trade Notes and Accounts Payable Miscellaneous Current Liabilities 5% Bonds Payable Common Stock, $10 Par Additional Paid-In Capital 300,000 240.000 100,000 100,000 51,000 51,000 Retained Earnings 399,000 338.000 5780.000 51.000.000 Market price of stock end-of-each year: $81 $68 Required: a Compute the following ratios for both years. 1. net profit margin 2. total asset turnover (use year-end assets) 3. return on assets (use year-end assets) 4. operating income margin 5. operating asset turnover (use year-end assets) 6. return on operating assets (use year-end assets) 7. return on total equity (use year-end total equity) b.Based on the results, describe the trend in profitability
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