Presented below are summary financial data from Pebble Company's annual report: (In millions) Year 2 Year 1 Balance sheet Total assets $111,005-year1 $153,304-year2 Shareholders' equity 68,612-year1 69,493-year2

Income statement Net sales $101,303-year1 $96,004-year2 Net income 14,132-year1 14,490-year2 Assume that Brick Company is all equity financed.

A. Calculate the following ratios for Years 1 and 2: 1. Return on equity 2. Return on assets (levered) 3. Return on sales (levered) 4. Total asset turnover 5. Financial leverage

B. Comment on the trends revealed by your analysis in Part A.