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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 $

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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 $ 214,000 118,000 96,000 58,400 37,600 10,400 $ 27,200 $173,000 102,400 70,600 54,200 16,400 5,200 $ 11,200 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, 7,200 shares outstanding) Retained earnings Total liabilities and stockholders' equity $ 6,400 15,200 42,400 48,600 $112,600 $ 17,200 46,200 36,000 13,200 $112,600 $ 8,200 19,200 38,800 40,400 $ 106,600 $ 18,200 46,200 36,000 6,200 $ 106,600 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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