Problem 3-16 Du Pont system of analysis [LO3]

Jerry Rice and Grain Stores has $4,630,000 in yearly sales. The firm earns 3.5 percent on each dollar of sales and turns over its assets 3.0 times per year. It has $197,000 in current liabilities and $313,000 in long-term liabilities.

(a)	What is its return on stockholders equity? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Return on stockholders' equity ________________%

(b)

If the asset base remains the same as computed in part a, but total asset turnover goes up to 4.00, what will be the new return on stockholders equity? Assume that the profit margin stays the same as do current and long-term liabilities. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

New return on stock holders' equity _________ %