Brief Exercise 12-65 Profitability Ratios Tinker Corporation operates in the highly competitive consulting industry. Tinker's balance sheet indicates the following balances as of December 31, 2019. Cash $80,000 Accounts receivable 87,000 Inventory 52,000 Property, plant, and equipment 485,000 Accounts payable 73,000 Bonds payable (due in 2021) 110,000 Common stock (12/31/2018) 250,000 Common stock (12/31/2019) 275,000 Retained earnings (12/31/2018) 180,000 Retained earnings (12/31/2019) 220,000 Required: Calculate Tinker's return on equity if Tinker's 2019 net income is $90,000. Round your answer to two decimal places. %
Brief Exercise 12-65 Profitability Ratios Tinker Corporation operates in the highly competitive consulting industry. Tinker's balance sheet indicates the following balances as of December 31, 2019. Cash $80,000 Accounts receivable 87,000 Inventory 52,000 Property, plant, and equipment 485,000 Accounts payable 73,000 Bonds payable (due in 2021) 110,000 Common stock (12/31/2018) 250,000 Common stock (12/31/2019) 275,000 Retained earnings (12/31/2018) 180,000 Retained earnings (12/31/2019) 220,000 Required: Calculate Tinker's return on equity if Tinker's 2019 net income is $90,000. Round your answer to two decimal places. %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Brief Exercise 12-65
Profitability Ratios
Tinker Corporation operates in the highly competitive consulting industry. Tinker's
| Cash | $80,000 |
| 87,000 | |
| Inventory | 52,000 |
| Property, plant, and equipment | 485,000 |
| Accounts payable | 73,000 |
| Bonds payable (due in 2021) | 110,000 |
| Common stock (12/31/2018) | 250,000 |
| Common stock (12/31/2019) | 275,000 |
| 180,000 | |
| Retained earnings (12/31/2019) | 220,000 |
Required:
Calculate Tinker's return on equity if Tinker's 2019 net income is $90,000. Round your answer to two decimal places.
%
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