Question 17

The following data was taken from the accounting records of White Oleander Corporation: 2020 2019 Total assets $950,000 $850,000 Total liabilities 250,000 240,000 Preferred shares 75,000 75,000 Common shares 300,000 300,000 Retained earnings 325,000 235,000 Additional data: Net income 140,000 Interest expense 25,000 Sales revenue 980,000 The return on equity for 2020 is

20.0%.

21.4%.

26.7%.

46.7%.