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Shown below is the liabilities and stockholders' equity section of the balance sheet for Bonita Company and Windsor Company. Each has assets totaling $4,272,000.

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Shown below is the liabilities and stockholders' equity section of the balance sheet for Bonita Company and Windsor Company. Each has assets totaling $4,272,000. Bonita Co. WindsorCo. Current liabilities $278,000 Current liabilities $518,000 Long-term debt, 10% 1,220,000 Common stock ($20 par) 3,020,000 Common stock ($20 par) 2,040,000 Retained earnings (Cash dividends, $296,000) 734,000 Retained earnings (Cash dividends, $226,000) 734,000 $4,272,000 $4,272,000 For the year, each company has earned the same income before interest and taxes. Bonita Co. Windsor Co. Income before interest and taxes $1,110,000 $1,110,000 Interest expense 122,000 0 988,000 1,110,000 Income taxes (20%) Net income 197,600 222,000 $790,400 $888,000 At year-end, the market price of Bonita's stock was $101 per share, and Windsor'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, eg. 16.85%) Return on total assets Bonita Company Windsor Company % % Which company is more profitable in terms of return on total assets?

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