The following shows Petroxyl Coincome statement for the last two years. The company had assets of $2.400 million in the first year and $15,032 million in the second year common equity was equal to $5,000 million in the fust year, and the company distributed 100% dividends during the first and the second years. In addition, the firm did not w stock during the year. Tools Petroxy Out Co. Income Statement for the Year Ending on December 31 (Millions of dollars) Year! Os Year 2 5.080 1,610 254 1,364 Net Sales Operating costs except depreciation and amortization Depreciation and amortization Total Operating costs Operating Income (or EB) Less: Interest Earnings before taxes (ET) Less: Taxes (25) Net Income 4,000 1,495 160 1,655 2,145 305 2,010 3,216 s 2,782 0496 actory 510 1.530 2,056 Calculate the profitability ratios of Petroxy Oil Co, in the following table Convert ill calculations to a percentage rounded to two decimal plictt. Calculate the profitability ratio of Petroxy o Co in the following table. Convert al calculations to a percentage rounded to two decimal places Ratio Value Year 2 Year 1 58.63% Operating margin Profit margin return on total assets Return on common equity Basic aming power 41.06 118 16.209 30.601 21.79 4 Decreon makers and analysts look deeply into profitability ratios to identity trends in a company's profitability Profitability ratios give insights into both the worablty of a company and the benefits the shareholders Tecno. IGentify which of the following statements are true about profitability ratios. Check all that a ply A higher operating margin than the industry average indicates either lower operating costs, higher product pricing, or both Of 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 the return on assets ratio implies an increase in the assets a firm owns. E tf a company issues new common shares but its net income does not increase, return on common equity will increase