St$.$ McStanky Beer Co$.$ Income Statement For the Year Ending on December $31($Millions of dollars$)$

Year $2$

Year $1$

Net Sales $1,9051,500$

Operating costs except depreciation and amortization $1,6101,495$

Depreciation and amortization $9560$

Total Operating Costs $1,7051,555$

Operating Income $($or EBIT$)200-55$

Less: Interest $27-6$

Earnings before taxes $($EBT$)173-49$

Less: Taxes $(25\%)43-12$

Net Income $130-37$

Calculate the profitability ratios of St$.$ McStanky Beer Co$.$ in the following table. Convert all calculations to a percentage rounded to two decimal places.

Ratio

Value

Year $2$ Year $1$

Operating margin $-3\mathrm{.}67\%$

Profit margin $6\mathrm{.}82\%$

Return on total assets $-1\mathrm{.}05\%$

Return on common equity $-1\mathrm{.}97\%$

Basic earning power $3\mathrm{.}55\%$