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   Calculating the Average Common Stockholders' Equity and the Return on Stockholders' Equity

   The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows:

   Somerville Company Income Statement For the Year Ended December 31, 20X2
   	Amount		Percent
   Net sales	$8,281,989		100.0%
   Less: Cost of goods sold	(5,383,293)		65.0
   Gross margin	$2,898,696		35.0
   Less: Operating expenses	(1,323,368)		16.0
   Operating income	$1,575,328		19.0
   Less: Interest expense	(50,000)		0.6
   Income before taxes	$1,525,328		18.4
   Less: Income taxes (40%)*	(610,131)		7.4
   Net income	$915,197		11.0
   * Includes both state and federal taxes.

   Somerville Company Statement of Retained Earnings For the Year Ended December 31, 20X2
   Balance, beginning of period	$1,979,155
   Net income	915,197
   Total	$2,894,352
   Preferred dividends	(80,000)
   Dividends to common stockholders	(201,887)
   Balance, end of period	$2,612,465

   Somerville Company Comparative Balance Sheets At December 31, 20X1 and 20X2
   	20X1		20X2
   Assets
   Current assets:
   Cash	$2,875,000		$2,580,000
   Marketable securities	800,000		700,000
   Accounts receivable (net)	939,776		690,000
   Inventories	490,000		260,000
   Other	93,000		74,261
   Total current assets	$5,197,776		$4,304,261
   Property and equipment:
   Land	$1,575,000		$1,067,315
   Building and equipment (net)	1,348,800		1,150,000
   Total long-term assets	$2,923,800		$2,217,315
   Total assets	$8,121,576		$6,521,576
   Liabilities and Stockholders' Equity
   Current liabilities:
   Notes payable, short term	$1,170,127		$ 543,641
   Accounts payable	298,484		101,500
   Current maturity of long-term debt	3,000		2,000
   Accrued payables	200,000		57,780
   Total current liabilities	$1,671,611		$ 704,921
   Long-term liabilities:
   Bonds payable, 10%	500,000		500,000
   Total liabilities	$2,171,611		$1,204,921
   Stockholders' equity:
   Preferred stock, $25 par, 8%	$1,000,000		$1,000,000
   Common stock, $1.50 par	337,500		337,500
   Additional paid-in capital*	2,000,000		2,000,000
   Retained earnings	2,612,465		1,979,155
   Total stockholders' equity	$5,949,965		$5,316,655
   Total liabilities and stockholders' equity	$8,121,576		$6,521,576
   * For common stock only.

   Required:

   1. Calculate the average common stockholders' equity. $fill in the blank

   2. Calculate the return on stockholders' equity. Round the answer to two decimal places. fill in the blank %