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 Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance.

The following shows Diusitech Inc.s income statement for the last two years. The company had assets of $10,575 million in the first year and $16,916 million in the second year. Common equity was equal to $5,625 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.

Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars)

	Year 2	Year 1
Net Sales	5,715	4,500
Operating costs except depreciation and amortization	1,365	1,268
Depreciation and amortization	286	180
Total Operating Costs	1,651	1,448
Operating Income (or EBIT)	4,064	3,052
Less: Interest	406	244
Earnings before taxes (EBT)	3,658	2,808
Less: Taxes (25%)	915	702
Net Income	2,743	2,106

Calculate the profitability ratios of Diusitech Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places.

Ratio	Value
	Year 2	Year 1
Operating margin	71.11% ?	67.82%
Profit margin	48.00%	46.80% ?
Return on total assets	?	19.91%
Return on common equity	?	37.44%
Basic earning power	24.02%

Boxes with question marks are parts I'm unsure of.

Please explain how you got the solution as well :)