Castile Products, Inc.

Balance Sheet

December 31

Assets

Current assets:

Cash$22,000

Accounts receivable, net 250,000

Merchandise inventory 310,000

Prepaid expenses6,000

Total current assets588,000

Property and equipment, net840,000

Total assets$1,428,000

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities$270,000

Bonds payable, 10%370,000

Total liabilities640,000

Stockholders' equity:

Common stock, $5 par value$170,000

Retained earnings618,000

Total stockholders' equity788,000

Total liabilities and stockholders' equity$1,428,000

Castile Products, Inc.

Income Statement

For the Year Ended December 31

Sales $2,240,000

Cost of goods sold1,180,000

Gross margin1,060,000

Selling and administrative expenses 610,000

Net operating income450,000

Interest expense37,000

Net income before taxes413,000

Income taxes (30%)123,900

Net income$289,100

Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $300,000. All sales were on account. Assets at the beginning of the year totaled $1,000,000, and the stockholders' equity totaled $675,000.

Please assist me with determining the following. This is not a graded homework assignment, more so to be used as an example for learning.

Trying to find the Return on total assets, and Return on equity.