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

Income statement Year 2 Year 1: Net sales $101,303(year 2) $96,004(year 1) Net income 14,132(year 2) 14,490(year 1) 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.