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Below are selected ratios for Manufacturers Corporation. Use this information answer the following questions
| Sr. No | Particulars | Year 1 | Year 2 | Year 3 |
| 1 | Net operating asset turnover | 1.4 | 1.31 | 1.25 |
| 2 | Inventory turnover | 5.6 | 5 | 4.6 |
| 3 | Accounts receivable turnover | 12.1 | 11.9 | 12.1 |
| 4 | Fixed assets turnover | 1.3 | 1.29 | 1.29 |
| 5 | Net operating profit margin | 4.50% | 4.60% | 4.80% |
| 6 | Net operating assets/equity | 2.1 | 1.98 | 1.77 |
| 7 | EBIT revenues | 8.90% | 8.60% | 8.60% |
| 8 | Gross margin | 20.10% | 19.90% | 19.80% |
| 9 | Income tax rate | 35% | 35% | 35% |
a. Calculate the return on net operating assets for all three years. Identify reasons for any changes.
b. Calculate the return on equity for all three years. Comment on changes.
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