Answer
$xy^2 +y^{3}$.
Work Step by Step
The given expression is
$=x^2y^2 \left ( \frac{1}{x}+\frac{y}{x^2} \right )$
Use the distributive property.
$=x^2y^2 \left ( \frac{1}{x}\right )+x^2y^2\left ( \frac{y}{x^2} \right )$
Cancel common terms.
$=xy^2 +y^{2+1}$
Simplify.
$=xy^2 +y^{3}$.
