The numbers below are for Iffy Company and Model Company for the year 2003:

Gaslraitta het hea tes ea eee een, eh es oR = $ 120 $ 900 Accolintsureceivableis tira Spat eee a eee Senet, 2 se ie ae 600 4,500 Inventony Are Speers Wrenn! tect Eh e ee ties & 480 6,000 Rropentyaplantrandieq Uipimemtwem- sens anise inten Gant nee ien Nenana ne 3,440 15,000 TLotallltabilitiesee emer: Si ateesy at cs ey AVY PONG ANS 5 oe cena the 3,190 18,150 Stockholders fequityaees: Mees eae ee ea ee, COS ten 1,450 8,250 Sales: aefai eae Se Fe ACRE) beet ere eC ae ee dee Se 10,000 75,000 Costiofiqoodsisoldig-te1t7, Harisineeee Perea dl eee. A se 9,200 66,750 Wagestexpemnse Arauniatiite. fst iateite. kai) be tok eee peed A alee a ES 700 5,250 Netrinconie Gee ee Otero ates a et ee ee ee 100 3,000 eee eee eeeeeeeeeeeeeeeeeeeeeeeceeeeeeeeee SS 1. Compute return on equity, profit margin, asset turnover, and the assets-to-equity ratio for both Iffy and Model. 2. Briefly explain why Iffy’s return on equity is lower than Model’s.