Perrett Corporation has provided the following financial data:
Required:a. What is the company's net profit margin percentage for Year 2?b. What is the company's gross margin percentage for Year 2?c. What is the company's return on total assets for Year 2?d. What is the company's return on equity for Year 2?

a.Net profit margin percentage = Net income ÷ Sales= $39,500 ÷ $1,200,000 = 3.3% (rounded)b.Gross margin percentage = Gross margin ÷ Sales= $430,000 ÷ $1,200,000 = 35.8% (rounded)c.Return on total assets = Adjusted net income* ÷ Average total assets**= $53,800 ÷ $1,460,000 = 3.68% (rounded)*Adjusted net income = Net income + [Interest expense × (1 − Tax rate)]= $39,500 + [$22,000 × (1 − 0.35)] = $53,800**Average total assets = ($1,470,000 + $1,450,000) ÷ 2 = $1,460,000d.Return on equity = Net income ÷ Average stockholders' equity*= $39,500 ÷ $937,000 = 4.22% (rounded)*Average stockholders' equity = ($954,000 + $920,000) ÷ 2 = $937,000