Measures of liquidity, Solvency and Profitability

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 61 on December 31, 20Y2.

Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
			20Y2		20Y1
Retained earnings, January 1			$ 1,669,200		$ 1,416,300
Net income			358,800		290,100
Total			$ 1,953,600		$ 1,706,400
Dividends
	On preferred stock		$ 12,600		$ 12,600
	On common stock		24,600		24,600
		Total dividends	$ 37,200		$ 37,200
Retained earnings, December 31			$ 1,990,800		$ 1,669,200

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$ 2,299,500		$ 2,118,620
Cost of goods sold	766,500		705,180
Gross profit	$ 1,533,000		$ 1,413,440
Selling expenses	$ 548,900		$ 650,510
Administrative expenses	467,590		382,040
Total operating expenses	1,016,490		1,032,550
Income from operations	$ 516,510		$ 380,890
Other income	27,190		24,310
	$ 543,700		$ 405,200
Other expense (interest)	136,000		75,200
Income before income tax	$ 407,700		$ 330,000
Income tax expense	48,900		39,900
Net income	$ 358,800		$ 290,100

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			Dec. 31, 20Y2		Dec. 31, 20Y1
Assets
Current assets
	Cash		$ 291,880		$ 347,850
	Marketable securities		441,760		576,450
	Accounts receivable (net)		394,200		372,300
	Inventories		292,000		219,000
	Prepaid expenses		55,216		69,570
		Total current assets	$ 1,475,056		$ 1,585,170
Long-term investments			1,284,384		292,104
Property, plant, and equipment (net)			2,210,000		1,989,000
Total assets			$ 4,969,440		$ 3,866,274
Liabilities
Current liabilities			$ 508,640		$ 487,074
Long-term liabilities
	Mortgage note payable, 8 %		$ 760,000		$ 0
	Bonds payable, 8 %		940,000		940,000
		Total long-term liabilities	$ 1,700,000		$ 940,000
Total liabilities			$ 2,208,640		$ 1,427,074
Stockholders' Equity
Preferred $ 0.70 stock, $ 20 par			$ 360,000		$ 360,000
Common stock, $ 10 par			410,000		410,000
Retained earnings			1,990,800		1,669,200
	Total stockholders' equity		$ 2,760,800		$ 2,439,200
Total liabilities and stockholders' equity			$ 4,969,440		$ 3,866,274

Required:

Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Return on total assets

%

The answer does not equal 8.12% or 8.1%