Question 23

Balance Sheet Current assets Cash 980,000 Acc receivable not given Inventories 1,040,000 Fixed assets 3,840,000 TOTAL ASSETS 6,500,000 Current liabilities Acc payable not given Long-term debt 2,000,000 Common stock 780,000 Retained earnings 3,350,000 TOTAL LIAB and EQUITY 6,500,000 Income Statement Sales 19,500,000 Operating expense 14, 630,000 EBIT 4,870,000 Interest expense 240,000 EBT 4.630,000 Taxes 1,852,000 Net income 2,778,000 What is the firm's return on common equity? 356.15%