17. The following selected data are taken from the financial statements of Ulysses Company:
	Sales revenue	$650,000
	Cost of goods sold	300,000
	Gross profit	$350,000
	Selling and administrative expense	150,000
	Operating income	$200,000
	Interest expense	75,000
	Income before tax	$125,000
	Income tax expense (40%)	50,000
	Net income	$75,000
	Accounts payable	$55,000
	Accrued liabilities	70,000
	Income taxes payable	10,000
	Interest payable	25,000
	Short-term loans payable	200,000
	Total current liabilities	$360,000
	Long-term bonds payable	$600,000
	Preferred stock, 10%, $100 par	$250,000
	Common stock, no par	600,000
	Retained earnings	550,000
	Total stockholders equity	$1,400,000
	Total liabilities and stockholders equity	$2,360,000
REQUIRED:
1. Compute the following ratios for Ulysses Company:
a. Return on sales
b. Asset turnover (Assume that total assets at the beginning of the year were $1,600,000.) Round final answers to 3decimals.
c. Return on assets
d. Return on common stockholders equity (Assume that the only changes in stockholders equity during the yearwere from the net income for the year and dividends on the preferred stock.) 2. Comment on Ulysses use of leverage. Has it successfully employed leverage? Explain.