Chapter 20, Problem 7ICA

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Jackson's Automotive has total assets of $300,000, a debt-equity ratio of 0.50, and net income of $24,000. What is the return on equity? A) 8.70 percent B) 9.50 percent C) 12.80 percent D) 11.30 percent E) 10.20 percent

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Which of the following is the most appropriate way to display liabilities on the balance sheet? a. alphabetically by payee b. relative likelihood of payment c. nearness to maturity d. All of these answer choices are correct.

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