Compute for Return on Equity for Year 3: The Derkins Corporation had the following information available: Year 3 Year 2 Year 1 Income Statement Revenue Cost of goods sold Selling & admin. expenses Interest expense Net Income 30,848 23,122 6,082 27,433 20,938 5,053 458 25,512 19,875 4,672 504 1,140 984 615 Balance Sheet Assets Cash Accounts receivable Inventory Property and equip. (net) Total Assets 681 354 587 412 909 3,200 3,281 7,668 2,627 2,810 6,378 2,245 2,514 Liabilities Accounts payable Unredeemed gift cards 373 358 410 280 385 Long-term liabilities 3,234 2,824 2,643 Stockholders' Equity Common stock Retained earnings Total Liabilities and Equity 985 985 985 2,607 7,668 1,801 6,378 1,467 5,760 Note: Use two Decimal Points and use Percent (%) if Necessary

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Compute for Return on Equity for Year 3:
The Derkins Corporation had the following information available:
Year 3
Year 2
Year 1
Income Statement
Revenue
Cost of goods sold
Selling & admin. expenses
Interest expense
Net Income
30,848
23,122
6,082
27,433
20,938
5,053
458
25,512
19,875
4,672
504
1,140
984
615
Balance Sheet
Assets
Cash
Accounts receivable
Inventory
Property and equip. (net)
Total Assets
681
354
587
412
909
3,200
3,281
7,668
2,627
2,810
6,378
2,245
2,514
Liabilities
Accounts payable
Unredeemed gift cards
373
358
410
280
385
Long-term liabilities
3,234
2,824
2,643
Stockholders' Equity
Common stock
Retained earnings
Total Liabilities and Equity
985
985
985
2,607
7,668
1,801
6,378
1,467
5,760
Note: Use two Decimal Points and use Percent (%) if Necessary
Transcribed Image Text:Compute for Return on Equity for Year 3: The Derkins Corporation had the following information available: Year 3 Year 2 Year 1 Income Statement Revenue Cost of goods sold Selling & admin. expenses Interest expense Net Income 30,848 23,122 6,082 27,433 20,938 5,053 458 25,512 19,875 4,672 504 1,140 984 615 Balance Sheet Assets Cash Accounts receivable Inventory Property and equip. (net) Total Assets 681 354 587 412 909 3,200 3,281 7,668 2,627 2,810 6,378 2,245 2,514 Liabilities Accounts payable Unredeemed gift cards 373 358 410 280 385 Long-term liabilities 3,234 2,824 2,643 Stockholders' Equity Common stock Retained earnings Total Liabilities and Equity 985 985 985 2,607 7,668 1,801 6,378 1,467 5,760 Note: Use two Decimal Points and use Percent (%) if Necessary
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