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

Instructions
(a) Prepare an income statement for Orasco Corporation.
(b) Compute Orasco Corporation’s return on ordinary shareholders’ equity for 2014.