18

1 pts Question 18 Use the following balance sheet and income statement to calculate the firm's return on equity (net income / common equity): Income Statement Balance Sheet Assets: Cash Accounts Receivable Inventories Land Other Fixed Assets Sales (all credit) $255,000 Cost of Goods Sold (153,000) $9.000 26,000 19,500 49.000 70,000 Operating Expenses (45,000) Depreciation (3,000) Interest Expense (9,000) Liabilities & Owners Equity Accounts Payable Long Term Debt Common Stock Paid in Capital Retained Earnings Taxes (15,300) 12,000 53,400 2,000 80,000 26,100 30.3% 36.2% 28.0% 27.5% 45.1%