Jefferson Manufacturing Ltd. produces custom furniture in the Ottawa area. The statement of changes in equity for the years ended December 31, 2015, and 2016 are shown below:

Instructions
1. Calculate the return on common shareholders' equity for 2016 and 2015.
2. Has the ratio improved or declined over the years? Do you have enough informa- tion to determine whether Jefferson Manufacturing is performing to standard? If you do not have enough information, what additional information is needed to make this determination?

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Jefferson Manufacturing Ltd. Statement of Changes in Equity For the Year Ended December 31, 2016 Accum. Other Compre. Income Common Retained Earnings Preferred Shares Shares Total Balance, January 1, 2016 Net income Dividends on preferred shares Dividends on common shares $2,000,000 $14 , 820,000 $3,450,000 $32,651 $20,302,651 1.653.000 (100.000) (75,000) 1.653.000 (100.000) (75.000) Issuance of shares Unrealized gain on revaluation of assets 1.500,000 1.500,000 12,560 12,560 Balance, December 31, 2016 $2,000,000 $16,320,000 $4,928,000 $45,211 $23.293,211 Jefferson Manufacturing Ltd. Statement of Changes in Equity For the Year Ended December 31, 2015 Accum. Other Compre. Preferred Shares Common Shares Retained Earnings Income Total $2.000.000 $14 ,820.000 $2.276,420 $29.391 $19.125,811 Balance, January 1, 2015 Net income 1.423,580 1,423,580 (150.000) (100,000) Dividends on preferred shares Dividends on common shares (150.000) (100,000) Unrealized gain on revaluation of assets 3,260 3,260 Balance, December 31, 2015 $2.000.000 $14.820.000 $3.450.000 $32,651 $20,302,651