Ironclad Solutions, Inc. had sales of $450,000, a net income of $22,500, and year-end assets of $300,000. The firm's total debt-to-total assets ratio was 35%. Based on the DuPont equation, what was Ironclad Solutions' ROE (Return on Equity)?
Ironclad Solutions, Inc. had sales of $450,000, a net income of $22,500, and year-end assets of $300,000. The firm's total debt-to-total assets ratio was 35%. Based on the DuPont equation, what was Ironclad Solutions' ROE (Return on Equity)?
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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What is the Return on equity on these financial accounting question?
Transcribed Image Text:Ironclad Solutions, Inc. had sales of $450,000, a
net income of $22,500, and year-end assets of
$300,000. The firm's total debt-to-total assets ratio
was 35%.
Based on the DuPont equation, what was Ironclad
Solutions' ROE (Return on Equity)?
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