The following data are provided: December 31 2011 2010 Cash $ 375,000 $ 250,000 Accounts receivable (net) 400,000 300,000 Inventories 650,000 550,000 Plant assets (net) 2,000,000 1,625,000 Accounts payable 275,000 200,000 Taxes payable 50,000 25,000 Bonds payable 350,000 350,000 10% Preferred stock, $50 par 500,000 500,000 Common stock, $10 par 600,000 450,000 Paid-in capital 400,000 325,000 Retained earnings 1,000,000 875,000 Net credit sales 3,200,000 Cost of goods sold 2,100,000 Operating expenses 725,000 Net income 375,000 Additional information: Depreciation included in cost of goods sold and operating expenses is $305,000. On May 1, 2011, 15,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2011. The rate of return on common stock equity for 2011 is - 325 2,000 or - 375 1,800 or -375 2,000 or - 325 1,800.