Your boss has asked you to calculate the profitability ratios of Cute Camel Woodcraft Company and make comments on its second-year performance as compared to its first-year performance.

The following shows Cute Camels income statement for the last two years. The company had assets 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 second year.

Cute Camel Woodcraft Company
Income Statement For the Year Ending December 31	Year 2	Year 1
Net Sales	$6,350,000	$5,000,000
Operating costs less depreciation and amortization	1,120,000	1,040,000
Depreciation and amortization	$317,500	$200,000
Total Operating Costs	1,437,500	1,240,000
Operating Income (or EBIT)	$4,912,500	$3,760,000
Less: Interest	663,188	488,800
Earnings before taxes (EBT)	$4,249,312	$3,271,200
Less: Taxes (40%)	1,699,725	1,308,480
Net Income	$2,549,587	$1,962,720

Calculate the profitability ratios of Cute Camel Woodcraft Company in the following table. Convert all calculations to a percentage rounded to two decimal places.

Ratio		Value
	Year 2	Year 1
Operating profit margin		75.20%
Net profit margin	40.15%
Return on total assets		16.70%
Return on common equity		31.40%