Profitability Ratios

Tinker Corporation operates in the highly competitive consulting industry. Tinker's balance sheet indicates the following balances as of December 31, 2019.

Cash	$80,000
Accounts receivable	87,000
Inventory	52,000
Property, plant, and equipment	485,000
Accounts payable	73,000
Bonds payable (due in 2021)	110,000
Common stock (12/31/2018)	250,000
Common stock (12/31/2019)	275,000
Retained earnings (12/31/2018)	180,000
Retained earnings (12/31/2019)	220,000

Required:

Calculate Tinker's return on equity if Tinker's 2019 net income is $90,000. Round your answer to two decimal places.