use the following information to answer question 3 & 4

The following data was taken from the accounting records of White Oleander Corporation:

2020 2019

Total assets $950,000 $850,000

Total liabilities 250,000 240,000

Preferred shares 75,000 75,000

Common shares 300,000 300,000

Retained earnings 325,000 235,000

Additional data:

Net income 140,000

Interest expense 25,000

Sales revenue 980,000

3. The return on assets for 2020 is

a) 15.6%.

b) 16.5%.

c) 17.4%.

d) 18.5%.

e)None of the above

Answer:

4. The return on equity for 2020 is

a) 20.0%.

b) 21.4%.

c) 26.7%.

d) 46.7%.

e)None of the above