A bakery shop has a return on assets of 15%. The bakery's total assets amount to $200, while its owner's equity is $80 and its debt equals $120. What is the return on equity for the bakery shop?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
Problem 16PROB
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Return on equity accounting question

A bakery shop has a return on
assets of 15%. The bakery's
total assets amount to $200,
while its owner's equity is $80
and its debt equals $120.
What is the return on equity for
the bakery shop?
Transcribed Image Text:A bakery shop has a return on assets of 15%. The bakery's total assets amount to $200, while its owner's equity is $80 and its debt equals $120. What is the return on equity for the bakery shop?
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