Wells Incorporated reported the following common size data for the year ended December 31, 20X7:
|
Income Statement
|
%
|
|
Sales
|
100.0
|
|
Cost of goods sold
|
58.2
|
|
Operating expenses
|
30.2
|
|
Interest expense
|
0.7
|
|
Income tax
|
5.7
|
|
Net income
|
5.2
|
|
Balance sheet
|
%
|
|
|
%
|
|
Cash
|
4.8
|
|
Accounts payable
|
15.0
|
|
Accounts receivable
|
14.9
|
|
Accrued liabilities
|
13.8
|
|
Inventory
|
49.4
|
|
Long-term debt
|
23.2
|
|
Net fixed assets
|
30.9
|
|
Common equity
|
48.0
|
|
Total assets
|
100.00
|
|
Total liabilities & equity
|
100.0
|
For 20X6, Wells reported sales of $183,100,000 and for 20X7, sales of $215,600,000. At the end of 20X6, Wells' total assets were $75,900,000 and common equity was $37,800,000. At the end of 20X7, total assets were $95,300,000. Calculate Wells' current ratio and return on equity ratio for 20X7.