Down Inc. operates a large quarry in Central BC. Selected data from Down Inc. for the year ended December 31, 2018 are presented below: Total assets $1,600,000 Average total assets 1,500,000 Net...

Down Inc. operates a large quarry in Central BC. Selected data from Down Inc. for the year ended December 31, 2018 are presented below:
Total assets $1,600,000
Average total assets 1,500,000
Net earnings 123,200
Net sales 1,200,000
Average common shareholders' equity 1,000,000
Net cash provided by operating activities 280,000
Required:
1. Calculate the profit margin and return on equity for Down's for the year ended December 31, 2018.
2. Comment on the ratios you prepared in part 1 by comparing your ratios to the following averages in the industry: Profit Margin: 5% Return on Equity 7%