Profitability Ratios}

Tinker Corporation operates in the highly competitive consulting industry. Tinker's statement of financial position indicates the following balances as of December 31, 2018:

\section*{Required:}
Calculate Tinker's return on equity if Tinker's 2018 net income is \(\$ 90,000\), Brief Exercise

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Cash $ 80,000 Accounts receivable 87,000 Inventory 52,000 Property, plant, and equipment 485,000 Accounts payable 73,000 Bonds payable (due in 2020) 110,000 Common shares (12/31/2017) 250,000 Common shares (12/31/2018) 275,000 Retained earnings (12/31/2017) 180,000 Retained earnings (12/31/2018) 220,000