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Question
Comparative calendar year financial data for a company are shown below:
| 2014 | 2013 | |
| Sales | $ 720,000 | $ 607,500 |
| Gross profit | 270,000 | 224,800 |
| Income before taxes | 79,200 | 78,700 |
| Net income | 51,200 | 51,700 |
| December 31, | December 31, | |
| 2014 | 2013 | |
| Liabilities | $ 493,500 | $ 452,500 |
| Common stock ($12 par) | 180,000 | 180,000 |
| Contributed capital in excess of par | 135,000 | 135,000 |
| Retained earnings | 204,000 | 177,300 |
| Total liabilities and equity | $1,012,500 | $ 944,800 |
Calculate:
(1) Return on total assets for 2014.
(2) Return on common stockholders' equity for 2014.
Answer
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