Business
Engineering
Math
Science
Social ScienceThe financial statements of Heatwave Athletic Wear include the following selected data ($ in millions): Sales, $22,400; Net income,$775; Beginning stockholders' equity, $3,590; Ending stockholders' equity, $4,170.Calculate the return on equity. (Round your answer to 1 decimal place.)Return on equity
Q. question 8
Image Transcriptionclose
The financial statements of Heatwave Athletic Wear include the following selected data ($ in millions): Sales, $22,400; Net income, $775; Beginning stockholders' equity, $3,590; Ending stockholders' equity, $4,170. Calculate the return on equity. (Round your answer to 1 decimal place.) Return on equity
Expert Answer
Return on equity (ROE): This financial ratio evaluates a company’s efficiency in using stockholders’ equity to generate net income. So, ROE is a tool used to measure the performance of a company.
Calculate the return on equity:
Image Transcriptionclose
Net income Return on equity Average shareholders' equity $775 $3,880 19.97%
Workings:
Compute the average stockholder’s e...
Image Transcriptionclose
Ending stockholder's equity +Opening stockhol der's equity Average Stockholder's Equity 2 ($4,170 $3,590) $7.760 2 - $3,880
Business
Accounting
Accounting Ratio Analysis
Related Accounting Q&A
Q: The dollar-value LIFO method was adopted by Windsor Corp. on January 1, 2017. Its inventory on that ...
A: Calculation of amount of the inventory at December 31, 2017, under the dollar-value LIFO method: Thu...
Q: I need help solving this problem
A: Calculate the actual price of direct material per square feet.
Q: 1. Homework Chapter 10
A: Dividends:This is the amount of cash distributed to stockholders by a company out its earnings, acco...
Q: Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by ...
A: Bank reconciliation statement: Bank statement is prepared by the bank. The company maintains its own...
Q: GIPI collected $36,000 cash in training fees on 1/10, of which $34,000 related to January and $2,000...
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...
Q: In Problem 5-5 if the numbers where changed to this. Top Company holds 90 percent of Bottom Comp...
A: In order to consolidate, the intercompany sales and cost of goods sold must be eliminated.
Q: Pasadenas starts a business on the 1 June 20x8, introducing the following assets: ...
A: Calculate the amount of net profit:
Q: Pleasie tell me if the following are assets liabilities or equity and also if they are a real or nom...
A: Classification of the items given:
Q: Support department cost allocation—direct method Becker Tabletops has two support departments (Janit...
A: Hence, the Janitorial department cost which is allocated to cutting department costs is $58,000. The...
