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Required information (The following information applies to the questions displayed below.) The comparative financial statements for Prince Company are below: Year 2 Year 1 $190,000

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Required information (The following information applies to the questions displayed below.) The comparative financial statements for Prince Company are below: Year 2 Year 1 $190,000 112,000 78,000 56,000 22,000 8,000 $ 14,000 $167,000 100,000 67,000 53,000 14,000 4,000 $ 10,000 Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (10% interest) Common stock ($5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity $ 4,000 14,000 40,000 45,000 $ 103,000 $ 16,000 45,000 30,000 12,000 $ 103,000 $ 7,000 18,000 34,000 38,000 $ 97,000 $ 17,000 45,000 30,000 5,000 $ 97,000 2. Compute the two components of ROA (total asset turnover and net profit margin) for Year 2. (Round your answers to 2 decimal places.) Total asset turnover Net profit margin %

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