1. The balance sheets at the end of each of the first two years of operations indicate the following:

Kellman Company
	Year 2	Year 1
Total current assets	$610,930	$558,793
Total investments	68,778	45,974
Total property, plant, and equipment	938,728	623,038
Total current liabilities	117,392	80,048
Total long-term liabilities	318,070	245,221
Preferred 9% stock, $100 par	85,866	85,866
Common stock, $10 par	535,611	535,611
Paid-in capital in excess of par-common stock	62,620	62,620
Retained earnings	498,877	218,439

Using the balance sheets for Kellman Company, if net income is $117,442 and interest expense is $46,559 for Year 2, what is the return on total assets for the year (round percent to two decimal points)?

a. 11.26%

b. 9.57%

c. 7.26%

d. 11.52%

2(9). The balance sheets at the end of each of the first two years of operations indicate the following:

Kellman Company
	Year 2	Year 1
Total current assets	$606,300	$550,700
Total investments	65,900	42,600
Total property, plant, and equipment	923,100	662,800
Total current liabilities	110,400	88,000
Total long-term liabilities	315,800	236,100
Preferred 9% stock, $100 par	92,900	92,900
Common stock, $10 par	548,900	548,900
Paid-in capital in excess of par-common stock	66,300	66,300
Retained earnings	461,000	223,900

Using the balance sheets for Kellman Company, if net income is $112,300 and interest expense is $31,700 for Year 2, what is the return on stockholders' equity for Year 2 (round percent to two decimal points)?

a. 11.73%

b. 10.69%

c. 10.43%

d. 13.38%