15. Assume the following data for Interactive Technology and Silicon Software:

a. Compute return on stockholders’ equity for both firms using ratio 3a in the text on page 59. Which firm has the higher return?

b. Compute the following additional ratios for both firms.
Net income/Sales Net income/Total assets Sales/Total assets Debt/Total assets

c. Discuss the factors from part b that added or detracted from one firm having a higher return on stockholders’ equity than the other firm as computed in part a.

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Net income Sales..... Total assets Interactive Technology (IT) $ 15,000 Silicon Software (SS) $ 50,000 150,000 1,000,000 160,000 400,000 Total debt... 60,000 240,000 Stockholders' equity ..... 100,000 160,000