Profitability Ratios Bell Corporation operates in the highly competitive consulting industry. Bell's balance sheet indicates the following balances as of December 31, 2026. Cash Accounts receivable Inventory $117,000 111,000 73,000 Property, plant, and equipment 561,000 Accounts payable 89,000 Bonds payable (due in 2028) 149,000 Common stock (12/31/2025) 280,000 Common stock (12/31/2026) 279,000 Retained earnings (12/31/2025) 218,000 257,000 Retained earnings (12/31/2026) Required: Calculate Bell's return on equity if Bell's 2026 net income is $108,000. Round your answer to nearest whole percent. x % Feedback ▼ Check My Work Return on equity is used to measure the profit earned on each dollar invested in a firm by stockholders.
Profitability Ratios Bell Corporation operates in the highly competitive consulting industry. Bell's balance sheet indicates the following balances as of December 31, 2026. Cash Accounts receivable Inventory $117,000 111,000 73,000 Property, plant, and equipment 561,000 Accounts payable 89,000 Bonds payable (due in 2028) 149,000 Common stock (12/31/2025) 280,000 Common stock (12/31/2026) 279,000 Retained earnings (12/31/2025) 218,000 257,000 Retained earnings (12/31/2026) Required: Calculate Bell's return on equity if Bell's 2026 net income is $108,000. Round your answer to nearest whole percent. x % Feedback ▼ Check My Work Return on equity is used to measure the profit earned on each dollar invested in a firm by stockholders.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 65BE: Profitability Ratios Tinker Corporation operates in the highly competitive consulting industry....
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Question
Profitability Ratios
Bell Corporation operates in the highly competitive consulting industry. Bell’s balance sheet indicates the following balances as of December 31, 2026.
Line Item Description Amount
Cash $117,000
Accounts receivable 111,000
Inventory 73,000
Property, plant, and equipment 561,000
Accounts payable 89,000
Bonds payable (due in 2028) 149,000
Common stock (12/31/2025) 280,000
Common stock (12/31/2026) 279,000
Retained earnings (12/31/2025) 218,000
Retained earnings (12/31/2026) 257,000
Required:
Calculate Bell’s return on equity if Bell’s 2026 net income is $108,000. Round your answer to nearest whole percent.
fill in the blank 1 of 1
%
Transcribed Image Text:Profitability Ratios
Bell Corporation operates in the highly competitive consulting industry. Bell's balance sheet indicates
the following balances as of December 31, 2026.
Cash
Accounts receivable
Inventory
$117,000
111,000
73,000
Property, plant, and equipment
561,000
Accounts payable
89,000
Bonds payable (due in 2028)
149,000
Common stock (12/31/2025)
280,000
Common stock (12/31/2026)
279,000
Retained earnings (12/31/2025)
218,000
257,000
Retained earnings (12/31/2026)
Required:
Calculate Bell's return on equity if Bell's 2026 net income is $108,000. Round your answer to
nearest whole percent.
x %
Feedback
▼ Check My Work
Return on equity is used to measure the profit earned on each dollar invested in a firm by
stockholders.
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