Compute the return on assets and the return on common

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Reference no: EM13577142

Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2015, and December 31, 2014.

	Farris Company		Ratzlaff Company
	2015	2014	2015	2014
Net sales	$1,575,677		$339,305
Cost of goods sold	1,080,740		240,962
Operating expenses	303,677		79,070
Interest expense	8,680		2,260
Income tax expense	54,865		6,670
Current assets	324,047	$312,609	83,970	$ 79,171
Plant assets (net)	520,365	501,197	139,336	124,946
Current liabilities	64,433	74,030	35,991	29,109
Long-term liabilities	107,330	91,629	29,422	25,095
Common stock, $10 par	498,000	498,000	117,000	117,000
Retained earnings	174,649	150,147	40,893	32,913

Compute the return on assets and the return on common stockholders' equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.)

	Farris Company		Ratzlaff Company
Return on assets		% ?		% ?
Return on common stockholders' equity		% ?		% ?

Reference no: EM13577142

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