Neef Corporation has provided the following financial data from its balance sheet and income statement: Year 2Year 1Total assets$1,302,000 $1,330,000 Total stockholders' equity$885,000 $880,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,420,000 Cost of goods sold 890,000 Gross margin 530,000 Operating expenses 493,000 Net operating income 37,000 Interest expense 17,000 Net income before taxes 20,000 Income taxes (35%) 7,000 Net income$  13,000 The company's return on equity for Year 2 is closest to:

A. 4.19%
B. 1.47%
C. 67.25%
D. 2.27%


Answer: B

Business

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