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 $ 127,960 5 119,888 76,808 91,eee 94, eee 79, eee 3,900 1,988 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 478, ee 470,000 780, eee 66e, eee (418, eee) (258, 800) $1,133,862 51,162,900 $ 97,8805 6.ee 8, eee 84,800 11.988 4.980 120,00 248,eee 690,00 699,00 212,06e 132.100 $1,133,860 $1,162,90e Additional information for Year 2 1. Net Income is $79,960, 2. Sales on account are $1,486,300. 3. Cost of goods sold is $1,141 800 Required: 1. Calculate the following profitability ratios for Year 2 (Round your answers to 1 decimal place.) Profitability Ratios a Gross profit ratio Return on assets Additional information for Year 2 1. Net income is $79,960 2 Sales on account are $1.486,300. 3. Cost of goods sold is $1141,800 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