Exercise 12-8B Calculate profitability ratios (L012-4) The balance sheets for Company B and additional information are provided below. COMPANY B Balance Sheets December 31, Year 2 and Year 1 Year 1 Year 2 Assets Current assets: Cash loo0 118 138,880 74,000 93,000 3,800 90,000 78,000 1,800 Accounts receivable Inventory Investments Long-term assets: Land 460,000 650,000 (248,000) 460,000 Equipment Less: Accumulated depreciation 770,000 (408,000) $1,131,680 Total assets $1,149,800 Liabilities and Stockholders Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders equity: 83,000 11,800 97,600 5,500 7,500 4,800 100,000 200,000 Common stock Retained earnings 680,000 241,080 680,000 170,200 Total liabilities and stockholders equity $1,131,680 $1,149,800 Additional information for Year 2: 1. Net income is $70,880. 2. Sales on account are $1,451,400. 3. Cost of goods sold is $1,120,050 Required: 1. Calculate the following profitability ratios for Year 2: (Round your answers to 1 decimal place.) Profitability Ratios % Gross profit ratio a. Return on assets b. c. Profit margin times d. Asset turnover Return on equity e