Tanaka Corporation's statement of financial position indicates the following balances as at December 31, 2022. Cash $70,000 Accounts receivable 80,000 Inventory 110,000 Property, plant, and equipment 500,000 Accounts payable 75,000 Bonds payable (due in 2022) 100,000 Common shares (12/31/2021) 275,000 Common shares (12/31/2022) 325,000 Retained earnings (12/31/2021) 200,000 Retained earnings (12/31/2022) 260,000 Required: If Tanaka's 2022 net income is $80,000, what is its return on equity (in percentage terms, rounded to two decimal places)?
Tanaka Corporation's statement of financial position indicates the following balances as at December 31, 2022. Cash $70,000 Accounts receivable 80,000 Inventory 110,000 Property, plant, and equipment 500,000 Accounts payable 75,000 Bonds payable (due in 2022) 100,000 Common shares (12/31/2021) 275,000 Common shares (12/31/2022) 325,000 Retained earnings (12/31/2021) 200,000 Retained earnings (12/31/2022) 260,000 Required: If Tanaka's 2022 net income is $80,000, what is its return on equity (in percentage terms, rounded to two decimal places)?
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18P
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Tanaka Corporation's
Cash $70,000
Inventory 110,000
Property, plant, and equipment 500,000
Accounts payable 75,000
Bonds payable (due in 2022) 100,000
Common shares (12/31/2021) 275,000
Common shares (12/31/2022) 325,000
Retained earnings (12/31/2022) 260,000
Required: If Tanaka's 2022 net income is $80,000, what is its return on equity (in percentage terms, rounded to two decimal places)?
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