Mann Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January 1, 2014. The following information is available for the company for 2013 and 2014. 
Instructions
(a) Compute the return on common stockholders' equity for both years.
(b) Explain how it is possible that net income increased, but the return on common stockholders' equity decreased.
(c) Compute the debt to assets ratio for both years, and comment on the implications of this change in the company's solvency.
Definitions:
Statistical Process Control
A methodology applied to monitor and control a process to ensure that it operates at its fullest potential, using statistical techniques.
Process Capability Index
A statistical measure of a process's ability to produce output within specified limits.
Specification Weight
A measure that indicates the importance or priority of a particular specification parameter in a product or process.
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