The following shows Blue Hamster's income statement for the last two years. The company had assots of $11,750,000 in the first year and $18,796,000 in the second year. Common equity was equal to $6,250,000 in the first year, 100% of earnings were paid out as dividends in the first year, and the firm did not issue new stock in the socond year. Assignment: Chapter 02 Analysis of Financial Statements Given the income statements, calculate the profitability ratios of Blue Hamster Manufacturing. Inc. Which of the following statements are true about profitability ratios? Check anl that opply. If a company has a net profit margin of 10%, it means that the company earmed a net income of so.10 for each dollar of sales. If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. An increase in a company's earnings means that the net profit margin is increasing. If a company issues new common shares but its net income does not incresse, return on common equity will increase