Shown below is the liabilities and stockholders equity section of the balance sheet for Martinez Company and Sandhill Company. Each has assets totaling $3,998,000.

Martinez Co.				SandhillCo.
Current liabilities		$288,000		Current liabilities		$428,000
Long-term debt, 11%		1,160,000		Common stock ($20 par)		2,840,000
Common stock ($20 par)		1,820,000		Retained earnings (Cash dividends, $320,000)		730,000
Retained earnings (Cash dividends, $226,000)		730,000
		$3,998,000				$3,998,000

For the year, each company has earned the same income before interest and taxes.

		Martinez Co.		Sandhill Co.
Income before interest and taxes		$1,240,000		$1,240,000
Interest expense		127,600		0
		1,112,400		1,240,000
Income taxes (20%)		222,480		248,000
Net income		$889,920		$992,000

At year-end, the market price of Martinezs stock was $101 per share, and Sandhills 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			%
Sandhill Company			%

Which company is more profitable in terms of return on total assets? Martinez CompanySandhill Company