Below are data extracted from the financial statements for Mushu Company.

Required:
1. Compute the following for 2011 and 2012:
a. Return on sales
b. Return on equity
c. Cash flow-to-net income ratio
d. Cash flow adequacy ratio
2. In which year did Mushu Company perform better: 2011 or 2012? Explain youranswer.

Mushu Company Selected Financial Statement Data For the Years Ended December 31, 2012 and 2011 (in millions of dollars) 2012 2011 $250,000 50,000 $250,000 50,000 Total assets Stockholders' equity Sales. 170,000 145,000 9,000 Net income 15,000 Cash from operations Cash paid for capital expenditures. Cash paid for acquisitions.. Cash paid for interest 22,000 16,000 6,000 5,000 8,000 35,000 16,000 1,800 3,000 6,000 Cash paid for income taxes