Comparative Calendar Year Financial Data for a Company Are Shown

question 62

Essay

Comparative calendar year financial data for a company are shown below:
$\begin{array}{|l|r|r|} \hline& {2014} & {2013} \\\hline \text { Sales } & \$ 720,000 & \$ 607,500 \\\hline \text { Gross profit } & 270,000 & 224,800 \\\hline \text { Income before taxes } & 79,200 & 78,700 \\\hline \text { Net income } & 51,200 & 51,700 \\\hline\\\hline & \text { December 31, } & \text { December 31, } \\\hline& 2014 & 2013 \\\hline \text { Liabilities } & \$ 493,500 & \$ 452,500 \\\hline \text { Common stock }(\$ 12 \text { par) } & 180,000 & 180,000 \\\hline \text { Contributed capital in excess of par } & 135,000 & 135,000 \\\hline \text { Retained earnings } & 204,000 & 177,300 \\\hline \text { Total liabilities and equity } & \$ 1.012,500 & \$ 944,800 \\\hline\end{array}$ Calculate:
(1) Return on total assets for 2014.
(2) Return on common stockholders' equity for 2014.

---

Definitions:

Tagging

The process of labeling or identifying someone or something in a digital context, often used in social media to link to profiles or categorize content.

Blog

A frequently refreshed web page or site, often managed by a single person or a small team, characterized by its informal or conversational tone.

Readers

Individuals who engage with written text for information, entertainment, or understanding.

Tweets

Short messages or posts made on the social media platform Twitter, limited to 280 characters.