(Year 2 operating margin of 90% may have a different answer)

The following shows Spandust Industries 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 milion 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 second year Spandust Industries Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Yar 1 Net Sales 4,500 1,268 180 1,448 4,0643,052 320 2,732 1,093 1,639 5,715 1,365 286 1,651 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 549 3,515 1,406 2,109 Calculate the profitability ratios of Spandust Industries Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places Ratio Value Year 2 90.31% 36.90% Year 1 Operating margin Profit margin Return on total assets Return on common equity Basic earning power 67.82% 15.50% 29.14% 24.03%