Profitability Ratios}

CORNERSTONE 13.7 Tanaka Corporation's statement of financial position indicates the following balances as of December 31, 2018:

\section*{Required:}
If Tanaka's 2018 net income is \(\$ 80,000\), determine its return on equity (in percentage terms, rounded to two decimal places).
\section*{Cornerstone Exercise

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Cash $ 70,000 Bonds payable (due in 2022) $100,000 Accounts receivable 80,000 Common shares (12/31/2017) 275,000 Inventory 110,000 Common shares (12/31/2018) 325,000 Property, plant, and equipment 500,000 Retained earnings (12/31/2017) 200,000 Accounts payable 75,000 Retained earnings (12/31/2018) 260,000