please help me out

6. Profitability ratios Protability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the protability ratios of Blur Corp. and make comments on its secondyear performance as compared to its rst year performance. The following shows Blur Corp.'s income statement for the last two years. The company had assets of $10,525 million in the rst year and $16,916 million in the second year. Common equity was equal to $5,625 million in the rst year, and the company distributed 100% of its earnings out as dividends during the rst and the second years. In addition, the rm did not issue new stock during either year. Blur Corp. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 5,715 4,500 Operating costs except depreciation and amortization 1,855 1,723 Depreciation and amortization 286 180 Total Operating Costs 2,141 1,903 Operating Income [or EBIT) 3,5?4 2,59? Less: Interest 35? 2?3 Earnings before taxes (EST) 3,21? 2,324 Less: Taxes [40%) 1,287 930 Net Income 1,930 1,394 Calculate the profitability ratios of Blur Corp. in the following table. Convert all calculations to a percentage rounded to two decimal places. Value Ratio Year 2 Year 1 Operating margin 57.71% Net profit margin 33.77% Return on total assets 13.18% Return on common equity 24.78% Basic earning power 21.13% Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply. A higher operating margin than the industry average indicates either lower operating costs, higher product pricing, or both. If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. An increase in a company's earnings means that the net profit margin is increasing. If a company issues new common shares but its net income does not increase, return on common equity will increase