Oslo Corporation decided to issue common stock and used the $300,000 proceeds to retire all of its outstanding bonds on January 1, 2010. The following information is available for the company for 2009 and 2010.

Instructions
(a) Compute the return on stockholder€™s equity ratio for both years.
(b) Explain how it is possible that net income increased, but the return on common stockholders€™ equity decreased.
(c) Compute the debt to total assets ratio for both years, and comment on the implications of this change in the company€™ssolvency.

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2010 $ 182,000 1,000,000 1,200,000 100,000 200,000 2009 Net income Average stockholders' equity Total assets Current liabilities Total liabilities $150,000 700,000 1,200,000 100,000 500,000