Township Corp.'s 2017 financial statements reported the following items-with 2016 figures given for comparison:

Compute Township Corp.'s rate of return on total assets and rate of return on common shareholders' equity for 2017. Do these rates of return look high or low?

Transcribed Image Text:

Balance sheet Total assets Total liabilities Total shareholders' equity (all common) Total liabilities and equity 2017 $49,000 $25,400 23,600 $49,000 2016 $44,800 $22,000 22,800 $44,800 Income statement Net sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense All other expenses Net income $39,130 14,210 24,920 14,000 400 4,420 $6,100 net