Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,340,000 Cost of goods sold 830,000 Gross margin 510,000 Operating expenses 465,143 Net operating income 44,857 Interest expense 9,000 Net income before taxes 35,857 Income taxes (30%) 10,757 Net income$25,100 The company's return on equity for Year 2 is closest to:
A. 79.14%
B. 3.02%
C. 2.11%
D. 3.77%
Answer: C
You might also like to view...
One very important purpose of constructing and using PDM is to determine how much time is needed to complete a project
Indicate whether the statement is true or false
An agency is created if one person ratifies another's unauthorized act
Indicate whether the statement is true or false
To avoid paying the higher corporate tax to a foreign government, the rule states that a multinational could set the transfer price for its goods entering the country for sale to an affiliate as ________ as possible to lower tariff payments
A) low B) high C) neutral D) proportional
By noting that a number of customers had complained about late bus arrivals at one particular stop, the bus line rerouted the bus away from a heavy traffic area. By increasing its miles traveled slightly, the bus was able to improve its arrival time substantially at the stop where it had formerly been perpetually late. Which service recovery strategy did the bus line use?
A. Make the service fail safe B. Treat customers fairly C. Respond quickly D. Encourage and track complaints E. Learn from recovery experiences