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FirmL had net assets at the end of the year of $350,000. The only transactions affecting stockholders' equity during the year were net income of

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FirmL had net assets at the end of the year of $350,000. The only transactions affecting stockholders' equity during the year were net income of $67,000 and dividends of $37,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Answer is complete but not entirely correct. Average Stockholders' Equity Ending stockholders 2- Average Stockholders' equity Equity 380,000 2 365,000 Beginning stockholders' equity 350.000 $ Net Income Return on Equity Average stockholders' equity $ 365,000 Return on Equity 18% 67,000

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