Shown below is the liabilities and stockholders' equity section of the balance sheet for Martinez Company and Sandhill Company. Each has assets totaling $4,187,000. SandhillCo. $315.000 Current liabilities Martinez Co. Current liabilities Long-term debt, 10% Common stock ($20 par) Retained earnings (Cash dividends, $206,000) Common stock ($20 par) Retained earnings (Cash dividends, $331,000) $425,000 3,090,000 672,000 1,280,000 1,920,000 672,000 $4,187,000 $4,187,000 For the year, each company has earned the same income before interest and taxes. Income before interest and taxes Interest expense Martinez Co. Sandhill Co. $1,200,000 $1,200,000 128,000 0 1,072,000 1,200,000 214,400 240,000 $857,600 $960,000 Income taxes (20%) Net income At year-end, the market price of Martinez's stock was $101 per share, and Sandhill's was $63.50. Assume balance sheet amounts are representative for the entire year. (a) Calculate the return on total assets? (Round answers to 2 decimal places, e.g. 16.85%.) Return on total assets Martinez Company 20.48 % Sandhill Company 22.93 % Which company is more profitable in terms of return on total assets? Sandhill Company (b) Calculate the return on common stock equity? (Round answers to 2 decimal places, e.g. 16.85%.) Return on common stock equity Martinez Company 44.67 % Sandhill Company 31.07 %