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The tollowing shows Sixty-Second Avenue Inc.'s income statement for the last two years. The company had assets of $10,575 million in the first year and

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The tollowing shows Sixty-Second Avenue Inc.'s income statement for the last two years. The company had assets of $10,575 million in the first year and $16,916 million in the second year. Common equity was equal to $5,625 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year Sixty-Second Avenue Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 4,500 1,365 1,268 180 1,448 4,064 3,052 244 3,658 2,808 1,123 2,195 1,685 Net Sales 5,715 Operating costs except depreciation and amortization Depreciation and amortization Total Operating Costs Operating Income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net Income 286 1,651 406 1,463 Calculate the profitability ratios of Sixty-Second Avenue Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Value Year 2 Year 1 67.82% Operating margin Profit margin Return on total assets Return on common equity Basic earning power 38.41% 15.93% | 29.96% 24.03%

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