Testbank Multiple Choice Question 67

The following data are provided:

	December 31
	2021		2020
Cash	$ 1350000		$ 995000
Accounts receivable (net)	1550000		1250000
Inventories	2600000		2150000
Plant assets (net)	8000000		6400000
Accounts payable	1050000		790000
Income taxes payable	220000		90000
Bonds payable	1450000		1450000
10% Preferred stock, $50 par	2200000		2200000
Common stock, $10 par	2500000		1700000
Paid-in capital in excess of par	1550000		1250000
Retained earnings	3800000		3400000
Net credit sales	12750000
Cost of goods sold	8400000
Operating expenses	2700000
Net income	1550000

Additional information: Depreciation included in cost of goods sold and operating expenses is $1220000. On May 1, 2021, 80000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2021. The return on common stock holders' equity for 2021 is