Firm L had net assets at the end of the year of $365,000. The only transactions affecting

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Firm L had net assets at the end of the year of $365,000. The only transactions affecting stockholders' equity during the year were net income of $56,000 and dividends of $26,000.

Required:
Calculate Firm L's average stockholders' equity and return on equity (ROE).

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Accounting What the Numbers Mean

ISBN: 978-0078025297

10th edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele

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