Use the following information: 2014 2015 Cash 140 210 Accounts payable 320 280 Accounts receivabble 340 380 Notes payable 400 300 Inventory 550 590 Long-term debt Net fixed assets 1,100 1,400 3,600 3,500 Common stock Retained earnings 1,200 980 1,610 1,720 4,630 4,680 Total assets Total liabilities & total equity 4,630 4,680 Year 2015 Sales COGS Depreciation Interest Taxes Net income $6,230 $4,720 $440 $75 $350 $645 Number of shares outstanding 100 What is the return on equity in 2015? a. 0.24 b. 1.33 c. 0.10 d. 3.38 e. 0.04

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Financial accounting

Use the following information:
2014 2015
Cash
140 210
Accounts payable
320 280
Accounts receivabble
340
380
Notes payable
400
300
Inventory
550 590
Long-term debt
Net fixed assets
1,100 1,400
3,600 3,500
Common stock
Retained earnings
1,200 980
1,610 1,720
4,630 4,680
Total assets
Total liabilities & total equity 4,630 4,680
Year 2015
Sales
COGS
Depreciation
Interest
Taxes
Net income
$6,230
$4,720
$440
$75
$350
$645
Number of shares outstanding 100
What is the return on equity in 2015?
a. 0.24
b. 1.33
c. 0.10
d. 3.38
e. 0.04
Transcribed Image Text:Use the following information: 2014 2015 Cash 140 210 Accounts payable 320 280 Accounts receivabble 340 380 Notes payable 400 300 Inventory 550 590 Long-term debt Net fixed assets 1,100 1,400 3,600 3,500 Common stock Retained earnings 1,200 980 1,610 1,720 4,630 4,680 Total assets Total liabilities & total equity 4,630 4,680 Year 2015 Sales COGS Depreciation Interest Taxes Net income $6,230 $4,720 $440 $75 $350 $645 Number of shares outstanding 100 What is the return on equity in 2015? a. 0.24 b. 1.33 c. 0.10 d. 3.38 e. 0.04
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