I only need help with finding Return on Common Equity. The question is already solved just show me how to get that answer.

Martin Manufacturing Company Income Statement for the Year Ended December 31, 2019 Sales revenue $5,075,000 Less: Cost of goods sold 3,704,000 Gross profits $1,371,000 Less: Operating expenses Selling expense $650,000 General and administrative expenses 416,000 Depreciation expense 152,000 Total operating expense 1,218,000 Operating profits $153,000 Less: Interest expense 93,000 Net profits before taxes $60,000 Less: Taxes (rate = 40%) 24,000 Net profits after taxes $36,000 Less: Preferred stock dividends 3,000 Earnings available for common stockholders $33,000 Earnings per share (EPS) $0.33

Martin Manufacturing Company Balance Sheets December 31 Assets 2019 2018 Current assets Cash $25,000 $24,100 Accounts receivable 805,556 763,900 Inventories 700,625 763,445 Total current assets $1,531,181 $1,551,445 Gross fixed assets (at cost) $2,093,819 $1,691,707 Less: Accumulated depreciation 500,000 348,000 Net fixed assets $1,593,819 $1,343,707 Total assets $3,125,000 $2,895,152 Liabilities and Stockholders Equity Current liabilities Accounts payable $230,000 $400,500 Notes payable 311,000 370,000 Accruals 75,000 100,902 Total current liabilities $616,000 $871,402 Long-term debt $1,165,250 $700,000 Total liabilities $1,781,250 $1,571,402 Stockholderss equity Preferred stock (2,500 shares, $1.20 dividend) $50,000 $50,000 Common stock (100,000 shares at $4.00 par)* 400,000 400,000 Paid-in capital in excess of par value 593,750 593,750 Retained earnings 300,000 280,000 Total stockholders' equity $1,343,750 $1,323,750 Total liabilities and stockholders' equity $3,125,000 $2,895,152 *The firm's 100,000 outstanding shares of common stock closed 2019 at a price of $11.38 per share.

Ratio Return on total assets (ROA) Actual 2017 1.6% Actual 2018 1.4% Actual 2019 1.056 % Industry average 2019 2.3% (Round to two decimal places.) Actual 2017 Ratio Return on common equity (ROE) Actual 2018 3.2% Actual 2019 2.55% Industry average 2019 3.1% 3.0% (Round to two decimal places.) Ratio Pricelearnings (P/E) ratio Actual 2017 33.5 Actual 2018 38.7 Actual 2019 34.5 Industry average 2019 43.4 (Round to one decimal place.) Assessing Martin Manufacturing's Current Financial Position Terri Spiro, an experienced budget analyst at Martin Manufacturing Company, has been charged with assessing the firm's financial performance during 2019 and its financial position at year-end 2019. To complete this assignment, she gathered the firm's 2019 financial statements (see B). In addition, Terri obtained the firm's ratio values for 2017 and 2018, along with the 2019 industry average ratios (also applicable to 2017 and 2018). These are presented in the table on historical and industry average ratios here To Do a. Calculate the firm's 2019 financial ratios, and then fill in the table below. (Assume a 365-day year.) b. Analyze the firm's current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, and market. c. Summarize the firm's overall financial position on the basis of your findings in part (b). Martin Manufacturing Company Historical and Industry Average Ratios Actual Actual 2017 2018 1.7 1.8 Actual 2019 Ratio Current ratio Industry average 2019 1.5 2.5 (Round to one decimal place.) Actual Actual 2017 1.0 Ratio Quick ratio Actual 2018 0.9 2019 Industry average 2019 1.2 1.3 (Round to one decimal place.) Actual 2017 5.2 Ratio Inventory turnover (times) Actual 2018 5.0 Actual 2019 Industry average 2019 10.2 5.3 (Round to one decimal place.) Actual 2017 50.7 days Ratio Average collection period Actual 2018 55.8 days Actual 2019 Industry average 2019 46.0 days 57.9 days (Round to one decimal place.) Actual 2017 1.5 Ratio Total asset turnover (times) Actual 2018 1.5 Actual 2019 Industry average 2019 2.0 1.6 (Round to one decimal place.) Actual 2017 45.8 Ratio Debt ratio Actual 2018 54.3% Actual 2019 Industry average 2019 24.5% 57 % (Round to one decimal place.) 2019 Ratio Times interest earned ratio 2017 2.2 2018 1.9 2019 2.5 1.65 Ratio Gross profit margin Actual 2017 27.5% Actual 2018 26.0% Actual 2019 27% Industry average 2019 26.0% Actual Actual 2017 1.04% Ratio Net profit margin 2018 Actual 2019 .65% Industry average 2019 1.14% 0.94% Actual Actual Actual Industry average