S&J Plumbing, Inc.'s 2010 income statement shows a net profit before tax of $468, whereas the balance sheet that the company's equity for the fiscal year-end 2010 is $1,746.  Calculate the company's return on equity and explain whether the managers are providing a good return on the capital provided by the company’s shareholders.  Diagram and explain the operating cycle of a service company. .

1. S&J Plumbing, Inc.'s 2010 income statement shows a net profit
before tax of $468, whereas the balance sheet that the
company's equity for the fiscal year-end 2010 is $1,746.
Calculate the company's return on equity and explain whether
the managers are providing a good return on the capital
provided by the company’s shareholders.
Diagram and explain the operating cycle of a service company.