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%.)