Question
Coastal Company had earnings of $175,000 in the last fiscal period. The cost of goods were $92,000; operational expenses were $18,000; interest was $11,000; tax
-
Coastal Company had earnings of $175,000 in the last fiscal period. The cost of goods were $92,000; operational expenses were $18,000; interest was $11,000; tax was $15,000. What is the return on equity and the return on investment if the company's total assets and total liabilities are $700,000 and $350,000 respectively?
a. ROE 5.6% and ROI 11.1%
b. ROE 11.1% and ROI 5.6%
c. ROE 15.4% and ROI 7.7%
d. ROE 7.7% and ROI 15.4%
Coastal Company had earnings of $175,000 in the last fiscal period. The cost of goods were $92,000; operational expenses were $18,000; interest was $11,000; tax was $15,000. What is the return on equity and the return on investment if the company's total assets and total liabilities are $700,000 and $350,000 respectively?
| a. | ROE 5.6% and ROI 11.1%
| |
| b. | ROE 11.1% and ROI 5.6%
| |
| c. | ROE 15.4% and ROI 7.7%
| |
| d. | ROE 7.7% and ROI 15.4% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
