Meade Publications is a magazine publisher established in Southern California. Financial analysts are concerned about Meade's ability to generate positive returns as printed material becomes less popular than digital material. Financial analysts observe the following account balances from Meade to determine financial ratios: Revenue $1,100,000 Expenses 700,000 Net income 350,000 Assets 625,000 Liabilities 175,000 Average equity 600,000 Required: Compute Meade's return on equity. Round your answer to one decimal place.
Meade Publications is a magazine publisher established in Southern California. Financial analysts are concerned about Meade's ability to generate positive returns as printed material becomes less popular than digital material. Financial analysts observe the following account balances from Meade to determine financial ratios: Revenue $1,100,000 Expenses 700,000 Net income 350,000 Assets 625,000 Liabilities 175,000 Average equity 600,000 Required: Compute Meade's return on equity. Round your answer to one decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Meade Publications is a magazine publisher established in Southern California. Financial analysts are concerned about Meade's ability to generate positive returns as printed material becomes less popular than digital material. Financial analysts observe the following account balances from Meade to determine financial ratios:
| Revenue | $1,100,000 |
| Expenses | 700,000 |
| Net income | 350,000 |
| Assets | 625,000 |
| Liabilities | 175,000 |
| Average equity | 600,000 |
Required:
Compute Meade's return on equity. Round your answer to one decimal place.
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