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 Purple Panda Products Inc. and make comments on its second-year performance as compared to its first-year performance. The following shows Purple Panda's income statement for the last two years. The company had assets of $8,225 million in the first year and $13,157.20 million in the second year. Common equity was equal to $4,375 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. Purple Panda Products Inc. Income Statement For the Year Ending on December 31 (Milions of dollars) Calculate the profitability ratios of Purple Panda Products Inc. in the following table. Convert ail calculations to a percentage rounded to two decimal places. Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply. A higher operating profit margin than the industry average indicates either lower opetating costs, higher product pricing, or both. If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. An increase in the return on assets ratio implies an increase in the assets a firm owns