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Business, 04.05.2021 17:00 Mimical

The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2.Stargel Inc. Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Y1Retained earnings, January 1$5,375,000$4,545,000Net income900,000925,000Total$6,275,000 $5,470,000Dividends: Preferred stock dividends$45,000$45,000Common stock dividends50,00050,000Total dividends$95,000$95,000Retained earnings, December 31$6,180,000$5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31,$6,180,000$5,375,000Stargel Inc. Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Y1Sales$10,000,000$9,400, 000Cost of goods sold5,350,0004,950,000Gross profit$4,650,000$4,450,000Selling expenses$2,000,000$1,880,000Adminis trative expenses1,500,0001,410,000Total operating expenses$3,500,000$3,290,000Income from operations$1,150,000$1,160,000Other revenue150,000140,000$1,300,000$1,3 00,000Other expense (interest)170,000150,000Income before income tax$1,130,000$1,150,000Income tax expense230,000225,000Net income$900,000$925,000Stargel Inc. Comparative Balance SheetDecember 31, 20Y2 and 20Y1Dec. 31, 20Y2 Dec. 31, 20Y1Assets Current assets: Cash$500,000$400,000Marketable securities1,010,0001,000,000Account s receivable (net)740,000510,000Inventories1,190 ,000950,000Prepaid expenses250,000229,000Total current assets$3,690,000$3,089,000Long-term investments2,350,0002,300,000Proper ty, plant, and equipment (net)3,740,0003,366,000Total assets$9,780,000$8,755,000Liabiliti es Current liabilities$900,000$880,000Long-ter m liabilities: Mortgage note payable, 10%$200,000$0Bonds payable, 10%1,500,0001,500,000Total long-term liabilities$1,700,000$1,500,000Tota l liabilities$2,600,000$2,380,000Stoc kholders' Equity Preferred $0.90 stock, $10 par$500,000$500,000Common stock, $5 par500,000500,000Retained earnings6,180,0005,375,000Total stockholders' equity$7,180,000$6,375,000Total liabilities and stockholders' equity$9,780,000$8,755,000Required: Determine the following measures for 20Y2.Return on total assets%Return on stockholder's equity%Return on common stockholder's equity%

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