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?
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?
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
Problem 16PROB
Related questions
Question
Return on equity accounting question

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?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you


EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT


EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT