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 i $ $ 208,600 60,000 86,000 3,100 111,000 83,000 71,000 1,100 390,000 700,000 (338,000) $1,109,700 390,000 580,000 (178,000) $1,058,100 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 $ $ 88,200 6,000 8,000 76,000 11,100 4,100 110,000 220,000 610,000 287,500 $1,109,700 610,000 136,900 $1,058,100 Additional information for Year 2: 1. Net income is $150,600. 2. Sales on account are $1,215,500. 3. Cost of goods sold is $973,400. 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 O NO