The financial results for the past two years for ABB Company, follow.

Required
1. Compute the company's profit margin, asset turnover, and return on investment for this year and last year. Beginning total assets for last year were $160,000. Round to two decimal places.
2. The desired return on investment for the company has been set at 10 percent. Compute ABB's residual income for this year and last year.
3. The cost of capital for the company is 5 percent. Compute the company's economic value added for this year and last year.
4. Before drawing conclusions about this company's performance, what additional information would youwant?

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ABB Company Balance Sheet December 31 This Year Last Year Assets Cash Accounts receivable inventory Other current assets Plant assets Total assets $9,000 40,000 30,000 1,000 120,000 $200,000 4,000 50,000 25,000 1,000 100,000 $180,000 Liabliities and Stockholders Equity Current liabilities Long-term Liabilities Stockholders' equity Total liabilities and stockholders' equity 10,000 20,000 170,000 $200,000 $ 10,000 10,000 160,000 $180,000 ABB Company Income Statement For the Years Ended December 31 Sales Cost of goods sold Selling and administrative expenses Operating income Income taxes After-tax operating income Thls Year $250,000 150,000 30,000 70,000 21,000 S 49,000 Last Year $200,000 115,000 25,000 60,000 18,000 42,000