Fongeallaz Corporation's income statement for Year 2 appears below:Income StatementSales (all on account)$1,360,000 Cost of goods sold 870,000 Gross margin 490,000 Operating expenses 416,286 Net operating income 73,714 Interest expense 18,000 Net income before taxes 55,714 Income taxes (30%) 16,714 Net income$  39,000?The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000. The company's return on equity for Year 2 is closest to:

A. 8.93%
B. 64.40%
C. 4.72%
D. 6.75%


Answer: C

Business

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