The following selected data were taken from the financial statements of Ohio Cement Co. for December 31, 2003, 2002, and 2001:

The 2003 net income was \($380,000,\) and the 2002 net income was \($800,000.\) No dividends on common stock were declared between 2001 and 2003.

a. Determine the rate earned on total assets, the rate earned on stockholders’ equity, and the rate earned on common stockholders’ equity for the years 2002 and 2003. Round to one digit after the decimal place.

b. What conclusions can be drawn from these data as to the company’s profitability?

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December 31, December 31, December 31, 2003 2002 2001 Total assets. $3,200,000 $2,800,000 $2,000,000 Notes payable (8% interest) 500,000 500,000 500,000 Common stock 900,000 900,000 900,000 Preferred $10 stock, $100 par, cumulative (no change during year) 300,000 300,000 300,000 Retained earnings. 1,430,000 1,050,000 250,000