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Brief Exercise 12-65 Profitability Ratios Tinker Corporation operates in the highly competitive consulting industry. Tinker's balance sheet indicates the following balances as of December 31,
Brief Exercise 12-65 Profitability Ratios
Tinker Corporation operates in the highly competitive consulting industry. Tinker's balance sheet indicates the following balances as of December 31, 2019.
Cash | $80,000 |
Accounts receivable | 87,000 |
Inventory | 52,000 |
Property, plant, and equipment | 485,000 |
Accounts payable | 73,000 |
Bonds payable (due in 2021) | 110,000 |
Common stock (12/31/2018) | 250,000 |
Common stock (12/31/2019) | 275,000 |
Retained earnings (12/31/2018) | 180,000 |
Retained earnings (12/31/2019) | 220,000 |
Required:
Calculate Tinker's return on equity if Tinker's 2019 net income is $90,000. Round your answer to two decimal places.
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