FINANCIAL PERFORMANCE :

1. 6. Ordonez Company had the following income statements for 20X1 and 20X2:

Ordonez Company generally paid dividend approximately equal to its net income.  This resulted in the company’s stockholders’ equity totaling $1,480 at the end of both 20X0 and 20X1.  However, at the end of 20X2 the company’s total stockholders’ equity was $1,980 primarily because of a large issuance of common stock in mid-20X2.

1. Compute Ordonez company’s gross margin percentage, the return on sales, and the return on stockholders’ equity for 20X1 and 20X2.
2. As a stockholder, would have been pleased about the change in performance between 20X1 and 20X2?  Explain why or why not.