Use the following information to answer this question. Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $6,140 Cost of goods sold Depreciation 4,400 420 Earnings before interest and taxes $1,320 Interest paid 30 Taxable income $1,290 Тахes 387 Net income $ 903 Bayside, Inc. 2016 and 2017 Balance Sheets ($ in thousands) 2016 2017 2016 2017 Cash $ 135 $ 240 Accounts payable $1,680 $1,650 Accounts rec. 1,070 910 Long-term debt 2,080 Common stock 850 650 Inventory 1,785 3,320 3,320 $2,990 $3,230 Retained earnings 3,780 Total 920 1,170 Net fixed assets 3,560 Total assets $6,770 $6,790 Total liab. & equity $6,770 $6,790 What is the return on equity for 2017?

Use the following information to answer this question. Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $6,140 Cost of goods sold Depreciation 4,400 420 Earnings before interest and taxes $1,320 Interest paid 30 Taxable income $1,290 Тахes 387 Net income $ 903 Bayside, Inc. 2016 and 2017 Balance Sheets ($ in thousands) 2016 2017 2016 2017 Cash $ 135 $ 240 Accounts payable $1,680 $1,650 Accounts rec. 1,070 910 Long-term debt 2,080 Common stock 850 650 Inventory 1,785 3,320 3,320 $2,990 $3,230 Retained earnings 3,780 Total 920 1,170 Net fixed assets 3,560 Total assets $6,770 $6,790 Total liab. & equity $6,770 $6,790 What is the return on equity for 2017?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

q. 18

What is the return on equity for 2017?

A. 13.30%

B. 20.70$

C. 20.11%

D. 28.73%

E. 21.30%

Use the following information to answer this question.
Bayside, Inc.
2017 Income Statement
($ in thousands)
Net sales
$6,140
Cost of goods sold
Depreciation
4,400
420
Earnings before interest and taxes
$1,320
Interest paid
30
Taxable income
$1,290
Taxes
387
Net income
$ 903
Bayside, Inc.
2016 and 2017 Balance Sheets
($ in thousands)
2016
2017
2016
2017
Cash
$ 135 $ 240
Accounts payable
$1,680 $1,650
Accounts rec.
910 Long-term debt
2,080
1,070
850
650
1,785
$2,990 $3,230 Retained earnings
3,780
Inventory
Common stock
3,320
3,320
Total
920
1,170
Net fixed assets
3,560
Total assets
$6,770 $6,790 Total liab. & equity
$6,770 $6,790
What is the return on equity for 2017?

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