Profitability Ratios}

Meade Publications is a magazine publisher established in southern Ontario. Financial analysts are concerned about Meade's ability to generate positive returns as printed material becomes less popular than digital material. Financial analysts observe the following account balances from Meade to determine financial ratios:

\section*{Required:}
Compute Meade's return on equity.
\section*{Brief Exercise

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Revenue $1,100,000 Expenses 700,000 Net income 350,000 Assets 625,000 Liabilities 175,000 Average equity 600,000