Exercise 5 A1 Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January 1, 2025. The following information is available for the company for 2024 and 2025 : Net income Average common stockholders' equity Total assets Current liabilities Total liabilities 2025 2024 {:[$120","000],[1","000","000]:} {:[$100","000],[800","000]:} 1,200,000 1,200,000 100,000 100,000 360 480,000 Instructions (a) Compute the return on common stockholders' equity for both years. (b) Explain how it is possible that net income increased, but the return on common stockholders' equity decreased. (c) Compute the debt to assets ratio for both years, and comment on the implications of this change in the company's solvency