Note: The common shares are trading in the stock market for $20 per share. Refer to the above financial statements of Microsoft Corporation. The firm's return on equity ratio for 2020 is ________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)

Select one:

A. 38.00%

B. 33.4%

C. 41.18%

D. 26.50%

Sales $10,000,000 Cost of Goods Sold 6,450,000 Depreciation Expense 550,000 Gross Profit $ 3,000,000 Selling and Administrative Expen 2,200,000 EBIT $ 800,000 Interest Expense 200,000 Income Befor Tax $ 600,000 Taxes 375,000 Net Income $ 225,000 Microsoft Corporation Comparative Balance Sheets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Total Assets 2020 $ 40,000 $ 600,000 460,000 $ 1,100,000 $ 1,400,000 2,500,000 2019 50,000 580,000 530,000 1,160,000 2,050,000 3,210,000 Accounts Payable Bank Loans Total Current Liabilities Long-term Bonds Total Liabilities Common Stock (200,000 Shares) Retained Earnings Total Equity Total Liabilities and Equity $ 300,000 $ 400,000 $ 700,000 $ 1,000,000 $ 1,700,000 $ 200,000 600,000 800,000 $ 2,500,000 $ 320,018 480,000 800,018 1,500,000 2,300,018 200,000 709,982 909,982 3,210,000