On January $1,2024,$ the general ledger of Grand Finale Fireworks includes the following account balances:

Accounts Debit Credit

Cash $ $44,400$

Accounts Receivable $47,900$

Supplies $9,200$

Equipment $81,000$

Accumulated Depreciation $$10,700$

Accounts Payable $16,300$

Common Stock, $$1$ par value $17,000$

Additional Paid$-$in Capital $97,000$

Retained Earnings $41,500$

Totals $$182,500$ $$182,500$

During January $2024,$ the following transactions occur:

January $2$ Issue an additional $2,100$ shares of $$1$ par value common stock for $$42,000.$

January $9$ Provide services to customers on account, $$19,300.$

January $10$ Purchase additional supplies on account, $$6,600.$

January $12$ Purchase $1,200$ shares of treasury stock for $$20$ per share.

January $15$ Pay cash on accounts payable, $$18,200.$

January $21$ Provide services to customers for cash, $$50,800.$

January $22$ Receive cash on accounts receivable, $$18,300.$

January $29$ Declare a cash dividend of $$0\mathrm{.}20$ per share to all shares outstanding on January $29.$ The dividend is payable on February $15.($Hint: Grand Finale Fireworks had $17,000$ shares outstanding on January $1,2024,$ and dividends are not paid on treasury stock.$)$

January $30$ Resell $500$ shares of treasury stock for $$22$ per share.

January $31$ Pay cash for salaries during January, $$43,700.$

$7.$ Analyze the following for Grand Finale Fireworks:

a$-1.$ Calculate the return on equity for the month of January.

a$-2.$ If the average return on equity for the industry for January is $2\mathrm{.}6\%,$ is the company more or less profitable than other companies in the same industry?

b$.$ How many shares of common stock are outstanding as of January $31,2024?$

c$-1.$ Calculate earnings per share for the month of January. $($Hint: To calculate average shares of common stock outstanding take the beginning shares outstanding plus the ending shares outstanding and divide the total by $2.)$

c$-2.$ If earnings per share was $$2\mathrm{.}40$ last year $($i$.$e$.,$ an average of $$2\mathrm{.}40$ per month$),$ is earnings per share for January $2024$ better or worse than last year$$s average?Req a$1$

Req a$2$

Req b

Req c$1$

Req c$2$

Calculate the return on equity for the month of January.