Net Income = 40,500

Common stock (par $15; authorized 100,000 shares, issued 30,000 shares, of which 1,000 shares are held as treasury stock) Additional paid-in capital-common stock Dividends Retained earnings, beginning of year Treasury stock at cost (1,000 shares) $450,000 175,000 23,000 71,000 20,000 BLAKE CORPORATION Balance Sheet (Excerpt) At December 31 Stockholders' Equity Contributed Capital Common Stock 450,000 Additional Paid-In Capital, Common Stock 175,000 Total Contributed Capital 625,000 Retained Earnings 01 88,500 Total Less: Treasury Stock, at cost Total Stockholders' Equity 713,500 20,000 733,500 Req 1A Req 1B Req 2 Req 3 Compute the ROE ratio for the current year, assuming total stockholders' equity was $624,000 on Decer previous year. (Round your answer to 1 decimal place.) ROE Ratio 6.0 % Req 2 Req 3