Prince Foods Company disclosed the following comparative income statement information:

The asset turnover for both 2006 and 2007 was 0.80.
a. Determine the rate earned on total assets for 2006 and 2007, using the DuPont formula.
b. Prepare common-size income statements for 2006 and 2007.
c. Analyze the change in the rate earned on total assets between 2006 and 2007 by conducting a margin analysis on common-sizestatements.

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For the Year Ended Dec. 31, 2007 Dec. 31, 2006 S500,000 190,000 $310,000 200,000 110,000 Sales Cost of goods sold $600,000 252,000 5348,000 240,000 $108,000 Gross profit Operating expenses Income from operations