The balance sheets for Monitor World Corporation and additional information are provided below.

MONITOR WORLD CORPORATION

Balance Sheets

December $31,2024$ and $2023$

$20242023$

Assets

Current assets:

Cash $$215,040$ $$128,000$

Accounts receivable $94,000100,000$

Inventory $103,00088,000$

Investments $4,8002,800$

Long$-$term assets:

Land $560,000560,000$

Equipment $870,000750,000$

Less: Accumulated depreciation $(508,000)(348,000)$

Total assets $$1,338,840$ $$1,280,800$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $$106,600$ $$93,000$

Interest payable $7,00012,800$

Income tax payable $9,0005,800$

Long$-$term liabilities:

Notes payable $120,000240,000$

Stockholders' equity:

Common stock $780,000780,000$

Retained earnings $316,240149,200$

Total liabilities and stockholders' equity $$1,338,840$ $$1,280,800$

Additional information for $2024$:

Net income is $$167,040.$

Sales on account are $$1,813,900.($All sales are credit sales.$)$

Cost of goods sold is $$1,346,550.$

Required:

$1.$ Calculate the following profitability ratios for $2024$:

$2.$ When we compare two companies, can one have a higher return on assets while the other has a higher return on equity?