Complete a margin analysis for Associated Industries and answer the questions below. 5. What was the change to the Gross Margins for the period and what does that indicate for the operation of the business? Answer: 6. What was the change to the Operating Margin and what does that indicate for the operation of the business? Answer: 7. What was the change to the Net Margin and what does that indicate for the operation of the business? Answer: 8. Using the net profit amounts from the profit and loss statement for Associated Industries and the select data from the balance sheet in the table below: Calculate return on assets and return on equity for the years 2016 and 2017. Also, calculate the change. 9. What happened to Return on Assets and what are the drivers in the change between 2016 and 2017? Answer: 10. What happened to Return on Equity and what are the drivers in the change between 2016 and 2017? 11. Now that we have determined there might be an operational issue, efficiency ratios should be used to further drill down into the data. Use the Associated Industries Balance sheet and Profit and Loss to calculate the efficiency ratios and working capital for 2016 and 2017. (Make sure to label all your answers appropriately.) 12. Is the overall change in efficiency between 2016 and 2017 favorable or unfavorable for the business? Discuss why you came to that conclusion. Answer: 13. Define what Days in Inventory tells you and use the data you calculated to discuss what has happened to Days in Inventory and how that will affect the business. Answer: 14. Define what the collection period tells you and use the data you calculated to discuss collection period and how that will affect the business