Janice Wong has extracted the following information from her income statement and balance sheet for 2021 and 2020: 20212020Profit After Tax$687,511$665,763Cash at Bank$109,805$102,213Mortgage payable this year$21,488$31,995Inventory$39,432$42,929Accounts payable$128,057$121,309Accounts receivable (trade debtors)$444,563$393,798Mortgage payable in 5 years time$516,150$633,164Owner's Equity $1,479,443$1,096,378 Based on the information provided, calculate the Return on Equity for 2021.

Name: Janice Wong has extracted the following information from her income st
Uploaded: 2022-11-29T14:11:17.000Z
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Description: Janice Wong has extracted the following information from her income statement and balance sheet for 2021 and 2020: 20212020Profit After Tax$687,511$665,763Cash at Bank$109,805$102,213Mortgage payable this year$21,488$31,995Inventory$39,432$42,929Acco

Return on equity = Net income after Tax/Average shareholder's equity

Answered: Janice Wong has extracted the following…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 14E: Interest and Income Taxes Staggs Company has prepared its 2019 statement of cash flows. In...

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Janice Wong has extracted the following information from her income statement and balance sheet for 2021 and 2020:

	2021	2020
Profit After Tax	$687,511	$665,763
Cash at Bank	$109,805	$102,213
Mortgage payable this year	$21,488	$31,995
Inventory	$39,432	$42,929
Accounts payable	$128,057	$121,309
Accounts receivable (trade debtors)	$444,563	$393,798
Mortgage payable in 5 years time	$516,150	$633,164
Owner's Equity	$1,479,443	$1,096,378

Based on the information provided, calculate the Return on Equity for 2021.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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