Question
Galaxy United, Inc. 2009 Income Statement ($ in millions) Net sales $8,500 Less: Cost of goods sold 7,230 Less: Depreciation 410 Earnings before interest and
Galaxy United, Inc. 2009 Income Statement ($ in millions) Net sales $8,500 Less: Cost of goods sold 7,230 Less: Depreciation 410 Earnings before interest and taxes 860 Less: Interest paid 80 Taxable Income 780 Less: Taxes 273 Net income $ 507 Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in millions) 2008 2009 2008 2009 Cash $ 120 $ 160 Accounts payable $1,120 $1,150 Accounts rec. 940 780 Long-term debt 960 1,294 Inventory 1,470 1,520 Common stock $3,140 $2,940 Sub-total $2,530 $2,460 Retained earnings 510 716 Net fixed assets 3,200 3,640 Total assets $5,730 $6,100 Total liab. & equity $5,730 $6,100 What is the return on equity for 2009?
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