Artworks Inc. has a net income of $150,000. The company has $1.6 million in assets and $700,000 in liabilities. What is the return on equity?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...
icon
Related questions
Question

I need the correct answer to this general accounting problem using the standard accounting approach.

Artworks Inc. has a net income of
$150,000. The company has $1.6
million in assets and $700,000 in
liabilities. What is the return on
equity?
Transcribed Image Text:Artworks Inc. has a net income of $150,000. The company has $1.6 million in assets and $700,000 in liabilities. What is the return on equity?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning