In 2020, Orasco SA 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 30%. The corporation declared preference dividends of R$15,000 in 2020, and its average ordinary shareholders’ equity during the year was R$200,000.

Instructions
a. Prepare an income statement for Orasco SA.
b. Compute Orasco’s return on ordinary shareholders’ equity for 2020.