From the chart below, what is the correct Return on Equity percentage? Current Assets $1,350 Total Assets $2,500 Operating Profit $475 Debt $975 Net Income $300 Inventory $450 Cost of Goods Sold $525 Sales $1,350 Current Liabilities $800 Total Equity $1,525 Total Liabilities and owners equity $2,500
From the chart below, what is the correct Return on Equity percentage? Current Assets $1,350 Total Assets $2,500 Operating Profit $475 Debt $975 Net Income $300 Inventory $450 Cost of Goods Sold $525 Sales $1,350 Current Liabilities $800 Total Equity $1,525 Total Liabilities and owners equity $2,500
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
Problem 16PROB
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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From the chart below, what is the correct
Current Assets | $1,350 |
Total Assets | $2,500 |
Operating Profit | $475 |
Debt | $975 |
Net Income | $300 |
Inventory | $450 |
Cost of Goods Sold | $525 |
Sales | $1,350 |
Current Liabilities | $800 |
Total Equity | $1,525 |
Total Liabilities and owners equity | $2,500 |
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