Need help with this general accounting question In 2021, ABC Electronics had sales of $50 billion and a net incomeof $15 billion, with year-end total assets of $120 billion. Thecompany's total debt-to-total assets ratio was 40.5%. Based on theDuPont equation, what was ABC Electronics' ROE in 2021?a) 18%b) 21%c) 14%d) 23%

Step 1: Define Return on Equity (ROE) Using DuPont EquationThe DuPont equation breaks down ROE into…

Answered: In 2021, ABC Electronics had sales of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In 2021, ABC Electronics had sales of $50 billion and a net income of $15 billion, with year-end total assets of $120 billion. The company's total debt-to-total assets ratio was 40.5%. Based on the DuPont equation, what was ABC Electronics' ROE in 2021? a) 18% b) 21% c) 14% d) 23%