Comparative Calendar Year Financial Data for a Company Are Shown

question 28

Essay

Comparative calendar year financial data for a company are shown below:
$\begin{array}{|l|r|r|}\hline \text { Sales } & \$ 720,000 & \$ 607,500 \\\hline \text { Gross profit } & 270,000 & 224,800 \\\hline \text { Income before taxes } & 79,200 & 78,700 \\\hline \text { Net income } & 51,200 & 51,700 \\\hline\\\hline &\text { December 31, } & \text { December 31, } \\&2011 & 2010 \\\hline \text { Liabilities } & \$ 493,500 & \$ 452,500 \\\hline \text { Common stock }(\$ 12 \text { par }) & 180,000 & 180,000 \\\hline \text { Contributed capital in excess of par } & 135,000 & 135,000 \\\hline \text { Retained earnings } & \underline{204,000} & \underline{177,300} \\\hline \text { Total liabilities and equity } & \$ 1.012,500 & \$ 944,800\\\hline\end{array}$
Calculate:
(1)Return on total assets for 2011.
(2)Return on common stockholders' equity for 2011.

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Definitions:

Net Exports

The value of a country's total exports minus the value of its total imports.

Trade Surplus

The amount by which the value of a country's exports exceeds the cost of its imports.

Exports

Goods or services sold by one country to another, contributing to the selling country's gross domestic product.

Imports

Products or services imported into a country from abroad for the purpose of selling.