The balance sheets for Company B and additional information are provided below. COMPANY B Balance Sheets December 31, Year 2 and Year 1 Year 2 Year 1 Assets Current assets: Cash $ 201,920 $ 127,000 Accounts receivable 92,000 99,000 Inventory 102,000 87,000 Investments 4,700 2,700 Long-term assets: Land 550,000 550,000 Equipment 860,000 740,000 Less: Accumulated depreciation (498,000) (338,000) Total assets $1,312,620 $1,267,700 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 106,400 $ 92,000 Interest payable 6,500 12,700 Income tax payable 8,500 5,700 Long-term liabilities: Notes payable 110,000 220,000 Stockholders' equity: Common stock 770,000 770,000 Retained earnings 311,220 167,300 Total liabilities and stockholders' equity $1,312,620 $1,267,700 Additional information for Year 2: 1. Net income is $143,920. 2. Sales on account are $1,776,300. 3. Cost of goods sold is $1,323,000. Required: 1. Calculate the following profitability ratios for Year 2: (Round your answers to 1 decimal place.) % % Profitability Ratios a. Gross profit ratio b. Return on assets c. Profit margin d. Asset turnover e. Return on equity times % 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Yes No