Problem 9-1

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

		Wildhorse Company				Sandhill Company
		2017		2016		2017		2016
Net sales		$1,899,000				$578,000
Cost of goods sold		1,062,000				297,000
Operating expenses		259,000				88,000
Interest expense		6,900				2,500
Income tax expense		69,600				29,000
Current assets		518,300		$496,732		132,504		$ 126,353
Plant assets (net)		837,612		795,000		222,168		200,041
Current liabilities		105,457		120,546		56,203		48,147
Long-term liabilities		181,244		143,100		47,096		39,750
Common stock, $10 par		795,000		795,000		190,800		190,800
Retained earnings		274,211		233,086		60,573		47,697

Compute the 2017 return on assets and the return on common stockholders equity for both companies. (Round all ratios to 1 decimal place, e.g. 2.5%.)

		Wildhorse Company			Sandhill Company
Return on assets			%			%
Return on common stockholders equity			%			%