Grundig Technologies is a manufacturer. Below are the company's two most recent balance sheets and its most recent income statement (This data is available in an Excel spreadsheet in the Exams module as well as your email). Use this information to answer the following questions (Question 1 & Question 2). You should show both the normal calculation and the calculation using the decompositions to receive full credit. You should use the decompositions from Chapter 04. Also, make sure that you label everything accordingly. (Note: Do not attempt the reformulation from Chapter 05.) 1. Calculate the rate of return on assets (ROA) for 2011. Disaggregate ROA into the profit margin for ROA and total assets turnover components. 2. Calculate the rate of return on common stockholders' equity (ROCE) for 2011. Disaggregate ROCE into the profit margin for ROCE, total assets turnover and capital structure leverage components. ASSETS 2011 2010 Cash $ 69,000 $ 22,000 Accounts Receivable 82,000 66,000 Supplies 15,000 19.000 h Inventories 180,000 189.000 Land 75,000 110,000 Equipment 260,000 200,000 Accumulated Deprec.-EQ. (69,000) (42.000) TOTAL ASSETS $612.000 $564.000 LIABILITIES Accounts Payable $ 34,000 $ 47,000 Unearned Rent 15,000 19,000 Bonds Payable 150,000 200,000 Stockholders' Equity Common Stock $1 Par Value) 214,000 164,000 Retained Earnings 199,000 134,000 TOTAL LIABILITIES AND EQUITY $612.000 $564,000 For the year ended December 31, 2011 Sales $560,000 Cost of Goods Sold ($320,000) Gross Profit $240,000 General and Administrative Expense ($38,000) Selling Expense ($27.000) Interest Expense ($17,000) Income before Income taxes $ 158,000 Income Tax Expense (35%) ($55,300) Net Income $102,700