Problem 13-1A (Part Level Submission)

Here are comparative statement data for Crane Company and Sheridan Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.

		Crane Company				Sheridan Company
		2017		2016		2017		2016
Net sales		$1,855,000				$596,000
Cost of goods sold		1,063,000				291,000
Operating expenses		265,000				89,000
Interest expense		8,600				3,200
Income tax expense		74,900				35,000
Current assets		534,599		$512,352		136,671		$ 130,326
Plant assets (net)		863,952		820,000		229,154		206,332
Current liabilities		108,773		124,337		57,971		49,661
Long-term liabilities		186,944		147,600		48,577		41,000
Common stock, $10 par		820,000		820,000		196,800		196,800
Retained earnings		282,834		240,416		62,477		49,197

Problem 13-1A (Part Level Submission)

Crane Company

Sheridan Company

Net Income / (Loss) : $443,500 / 23.9% $177,800 / 29.8%

Compute the 2017 return on assets and the return on common stockholders equity for both companies.

		Crane Company			Sheridan Company
Return on assets			%			%
Return on common stockholders equity			%			%