Using the information for Otis, Inc., in SE and SE, compute profit margin, asset turnover, and return on assets for 2011 and 2012. In 2010, total assets were $200,000. Comment on the results.

In SE, The comparative income statements and balance sheets of Otis, Inc., appear below. Compute the amount and percentage changes for the income statements and comment on the changes from 2011 to 2012.

(Round computations to one decimal place.)

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Otis, Inc. Comparative Income Statements For the Years Ended December 31, 2012 and 2011 2012 2011 Net sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense $360,000 224,000 $136,000 $290,000 176,000 $114,000 60,000 $ 54,000 80,000 $ 56,000 14,000 10,000 $ 44,000 16,000 $ 28,000 Income before income taxes $ 42,000 Income taxes expense 14,000 Net income $ 28,000 Earnings per share 2.80 2.80 Otis, Inc. Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets $ 48,000 260,000 $308,000 Current assets $ 40,000 Property, plant, and equipment (net) Total assets 200,000 $240,000 Liabilities and Stockholders' Equity Current liabilities $ 36,000 $ 44,000 Long-term llabilities Stockholders'equity Total llabilities and stockholders'equity 180,000 92,000 120,000 76,000 $240,000 $308,000