Beginning of the Year	End of the Year
Current assets	$62,000	$82,000
Current liabilities	25,000	55,000
Plant and equipment	300,000	350,000
Long-term liabilities	50,000	75,000
Common shareholders equity	125,000	225,000
Preferred shareholders equity	60,000	85,000

Given the following information for Victory Stables, calculate their return on assets, and return on equity and comment on the use of these ratios (why would we use them? what do they tell us?).

Net income	$50,000
Interest expense	8,500
Income tax expense	15,250
Preferred dividends	2,500