Question
2. Firm L had net assets at the end of the year of $367,000 .The only transactions affecting stockholders equity during the year were net
| 2. Firm L had net assets at the end of the year of $367,000 .The only transactions affecting stockholders equity during the year were net income of $66,000 and dividends of $36,000. |
| Required: |
| Calculate Firm Ls average stockholders equity and return on equity (ROE). |
Average Shareholder Equity:
| + | / | = | Average Shareholder Equity | ||
| $ | + | $ | / | = | $__________________ |
Return on Equity:
| / | = | Return on Equity | ||
| $ | / | $ | = | $__________________ |
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
