Use the Hajjar's Data Set to compute these profitability measures for 2012:
a. Rate of return on net sales
b. Rate of return on total assets (interest expense for 2012 was $405,820)
c. Rate of return on common stockholders' equity
Are these rates of return strong or weak?
Hajjar's Data Set
Hajjar's
Income Statement
For the Year Ended December 31, 2012
Net sales ...................................................................................................... $42,522,500
Cost of goods sold........................................................................................ 29,900,000
Interest expense............................................................................................ 405,820
All other expenses ........................................................................................ 9,665,300
income.......................................................................................................... $2,551,380

Hajjar's Balance Sheet December 31, 2012 and 2011 2012 $ 1,300,000 $ 900,000 Total current liabilities 2011 2012 2011 4,800,000 3,250,000 4,529,000 4,760,000 Cash Short-term investments. 250,000 275,000 Long-term liabilities Accounts receivable 200,000 219,400 Total liabilities 9,329,000 8,01 Other current asset00 Total current assets. All other assets Total assets 3,520,000 2,500,000 arnings..7.431,0006,175,000 10,951,000 8,675,000 $20,280,000 $16,685,000 Total liabilities and equity.. $20,280,000 $16,685,000 900000455,600 7,220,000 6,180,000 Retained earning 455,600 Common 13,060,000 10,505,000 Total equity