In 2014, Reliant Corporation had net sales of $600,000 and cost of goods sold of $360,000. Operating expenses were $153,000, and interest expense was $7,500. The corporation's tax rate is 25%. The corporation declared preferred dividends of $12,000 in 2014, and its average common stockholders' equity during the year was $180,000.

Instructions

(a) Prepare an income statement for Reliant Corporation.

(b) Compute Reliant Corporation's return on common stockholders' equity for 2014.