Ahl Enterprise lists the following data for 2011 and 2010:
|
2011
|
2010
|
|
Net income
|
$ 52,500
|
$ 40,000
|
|
Net sales
|
1,050,000
|
1,000,000
|
|
Average total assets
|
230,000
|
200,000
|
|
Average common equity
|
170,000
|
160,000
|
Required: Calculate the net profit margin, return on assets, total asset turnover, and return on common equity for both years. Comment on the results. (For return on assets and total asset turnover, use end-of-year total assets; for return on common equity, use end-of-year common equity.)