An extract from a boat retails 2020 financial statements follows: Income Statement Year ended Dec 31, 2020 Year ended Dec 31, 2019 Net Income  12,866 11,242 Balance Sheet As of Dec 31, 2020 As of Dec 31, 2019 Total Stockholders Equity 3,299 (3,116) What was the companys return on equity for 2020?

Cornerstones of Financial Accounting
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ISBN:9781337690881
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Chapter12: Fainancial Statement Analysis
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An extract from a boat retails 2020 financial statements follows:

Income Statement Year ended Dec 31, 2020 Year ended Dec 31, 2019
Net Income  12,866 11,242
Balance Sheet As of Dec 31, 2020 As of Dec 31, 2019
Total Stockholders Equity 3,299 (3,116)

What was the companys return on equity for 2020?

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Net Income for 2020 = 12,866

Average Stockholders Equity =(-3,116 + 3,299) / 2 = 91.50

hence

 

 

Looking at the solution. Why is the 3,116 negative? I just wanted to make sure this was correct. 

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