Computing and Interpreting Financial Statement Ratios Following are selected ratios of Colgate-Palmolive for 2015 and 2014. Return on Assets(ROA) Component 2015 2014 Profitability (Net income/Sales) 7.80% 11.30% Productivity (Sales/Average assets) 1.37 1.28 a. Was the company profitable in 2015? What evidence do you have of this? No, Colgate-Palmolive was not profitable as evidenced by its decrease in its net profit margin. Yes, Colgate-Palmolive was profitable as evidenced by its positive net profit margin. b. Is the change in productivity (asset turnover) a positive development? No, the increase indicates more operating assets were needed to generate the same level of sales as the prior year. Yes, the increase indicates that operating assets generated a higher level of sales than the prior year. C. Compute the company's ROA for 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%)