Profitabalty ratos heio in the analysis of the combined impact of Gquidity ratios, asset manageinent ratios, and debt management ratios on the operabing performance of a firm. Yourboss has asked you to calculate the profitathty ratios of Randal and Arts Inc and make comments on its second-year perfomance as compared with its first-year performance. The folowinn shows Randall and Arts Inc's income statement for the last two years. The company had assets of $3,525 minon in the first year and $5,639 millon in the second yeat. Common equity was equal to $1,875 millon in the first year, and the company distributed 100% of its earnings out as dividends dunng the first and the second years. In addition, the firm did not issue new stock duning either yeac Randall and Arts Inc. Income Statement For the Year Ending on December 31 (Milkons of dollars) Calculste the profitabaty ratios of Pandall and Arts inc, in the followng tabe. Convert al calculations to a percentage rounded to two decinal places Deosion makers and analysts look deepey inte profitahaty rabos to identify trends in a compacy's profitablity. Profitabilty tatoos give msights into both the survivabaly of a company and the benefits that nhareholders recoive. Mdentiy which of the folowng statements are true about profitabity raties. Chock all that ooply. A higher operating marga than the industry average indicates ether lower operating costs, higher product pricing, or both. If a companys operating margin incieases but its profit maron decreases, t could mean that the canpany pad more in intrrest or taxes An ncrease on a company's earlangs means that the profit margen is increasng. II a company iswies new common sheres but its net income does not ncrease, return on common equity wit increase