Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Gadget Twin Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Gadget Twin Inc.'s income statement for the last two years. The company had assets of $4,700 million in the first year and $7,518 million in the second year. Common equity was equal to $2,500 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Gadget Twin Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Net Sales Year 2 Year 1 2,540 2,000 Operating costs except depreciation and amortization 1,120 1,040 Depreciation and amortization Total Operating Costs 127 80 1,247 1,120 Operating Income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (25%) Net Income 1,293 880 175 70 1,118 810 280 203 838 607 Calculate the profitability ratios of Gadget Twin Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places. Operating costs except depreciation and amortization 1,120 1,040 Depreciation and amortization Total Operating Costs Operating Income (or EBIT) 127 80 1,247 1,120 Less: Interest Earnings before taxes (EBT) Less: Taxes (25%) Net Income 1,293 880 175 70 1,118 810 280 203 838 607 Calculate the profitability ratios of Gadget Twin Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Year 2 Operating [Select] margin Value Year 1 44.00% Profit [Select] 32.99% margin Return on [Select] total 12.91% assets Return on [Select] common 24.28% equity Basic [Select] earning 17.20% power