The Haines Corp. shows the following financial data for 20X1 and 20X2:

	20X1			20X2
Sales	$	3,480,000		$	3,140,000
Cost of goods sold		2,530,000			2,260,000
Gross profit	$	950,000		$	880,000
Selling & administrative expense		255,000			261,000
Operating profit	$	695,000		$	619,000
Interest expense		44,800			49,700
Income before taxes	$	650,200		$	569,300
Taxes (35%)		227,570			199,255
Income after taxes	$	422,630		$	370,045

For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 20X2. (Input your answers as a percent rounded to 2 decimal places.)

PART 2:

Easter Egg and Poultry Company has $1,710,000 in assets and $645,000 of debt. It reports net income of $177,000. a. What is the firms return on assets? (Enter your answer as a percent rounded to 2 decimal places.) b. What is its return on stockholders equity? (Enter your answer as a percent rounded to 2 decimal places.) c. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)? (Enter your answer as a percent rounded to 2 decimal places.)