Profitability ratios help in the analysis of the combined impoct of liquidity notios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has acked you to calculate the profitability ratios of Danitech inc. and make comments on its second year performance as compared with its finstyear performance. The following shows Dlusitech Incis income statenent for the last two years. The compary had assets of $11,750 million in the first year and $18,796 milion in the second year. Commen equity was equal to $6,250 millon in the first year, and the cornpany distributed 100% of its eamings out as dividends durno the first and the second years, In addation, the firm did not issue new stock during either year. Diusitech inc, Income Statement For the Year Ending on December 31 (Millions of dollars) Ciloulate the profitability ratios of Dusitech inci in the following table. Corvert all calialations to a percentage rounded to two decimal places. Decision makers and a nalysts look deeply into profitabity ratios to identry trends in a company's proficabizy. Profitabifity ratios give insights into both the survivability of a company and the benefics that shareholders recaive. Identify which of the following statements are true about profitability natias. Check alf that apply If a compary has a profit margin of 10%, it mearis that the compary eamed a net income of so.10 for each dollar of sales. If a company's cperating margin incremes but its profit margin decreases, it could mean that the company paid more in interest or taxes. An inowase in a company's eamings mass that the pedfit margin is increasing