The numbers below are for Iffy Company and Model Company for the year 2011:

1. Compute return on equity, return on sales, asset turnover, and the assets-to-equity ratio for both Iffy and Model.
2. Briefly explain why Iffy's return on equity is lower thanModel's.

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Iffy Model $ 120 Cash $ 900 4,500 6,000 15,000 18,150 8,250 75,000 66,750 5,250 3,000 Accounts receivable 600 Inventory. Property, plant, and equipment 480 3,440 3,190 1,450 10,000 9,200 Total liabilities Stockholders' equity. Sales. Cost of goods sold. Wage expense 700 Net income 100