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For $2018$ and $2017,$ calculate return on$$ sales, asset$$ turnover, return on assets$($ROA$),$ leverage, return on common$$ stockholders' equity$($ROE$),$ gross profit$$ percentage, operating income$$ percentage, and earnings per share to measure the ability to earn profits for Rolling Hills $$Decor$,$ Inc. Perform a DuPont Analysis for ROA and$$ ROE, and round each component ratio to three decimals$$ places; for other ratio$$ computations, round to two decimals. Did the$$ company's operating performance improve or deteriorate during $2018?$

Rolling Hills Decor, Inc.$$Comparative Income Statements$$Years Ended December$31,2018$ and $2017$

$2018$

Net sales $$250,000$

Cost of goods sold$123,000$

Gross profit$127,000$

Selling and general expenses$55,000$

$$Income from operations$72,000$

Interest expense$14,000$

Income before income tax$58,000$

Income tax expense$20,000$

Net income $$38,000$

$2017$

Net sales $$199,000$

Cost of goods sold$102,000$

Gross profit$97,000$

Selling and general expenses$51,000$

$$Income from operations$46,000$

Interest expense$18,000$

Income before income tax$28,000$

Income tax expense$10,000$

Net income $$18,000$

Additional Info

$2018$

Total Assets $$310,000$

Common Stockholders$$ equity $$196,000$

Preferred Dividends $$2000$

Average Common Shares Outstanding during the year $15000$

$2017$

Total Assets $$305,000$

Common Stockholders$$ equity $$194,000$

Preferred Dividends $$1000$

Average Common Shares Outstanding during the year $14000$

$2016$

Total Assets $$300,000$

Common Stockholders$$ equity $$192,000$

Preferred Dividends $$0$

Average Common Shares Outstanding during the year $13000$

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