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Required information The following information was taken from the financial statements of C Co for the years 20X2 and 20X1: Statement of Earnings Net operating

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Required information The following information was taken from the financial statements of C Co for the years 20X2 and 20X1: Statement of Earnings Net operating revenues Cost of goods sold Gross profit Selling, administrative and general expenses Other operating charges Operating profit Other revenues (expenses) including interest expense $337 million in 20X2 and $277 million in 20X1 Profit before taxes Income tax expense (tax rate 36.3% in 20X2) Profit 20X2 $19.805 6,009 13,796 9,001 813 3,982 (163) 20X1 $18,813 5,562 13,251 8,211 73 4,967 231 3,819 1.388 2.431 5.198 1,665 3,533 Statement of Financial Position Cash and cash equivalents Marketable securities Trade receivables, net Inventories Prepaid expenses and other assets Total current assets Equity method investments Cost method investments Marketable securities and other investments Total Investment assets Property, plant and equipment, net Call and thar intanillo accate 20X2 $1,611 2011 1.7981 1,076 1.794 6.480 6.442 350 2.124 8,916 4,267 1 acol 20X1 $1,648 159 1,666 890 2017 6,380 6,291 395 1863 8,549 3,669 547 Statement of Financial Position Cash and cash equivalents Marketable securities Trade receivables, net Inventories Prepaid expenses and other assets Total current assets Equity method investments Cost method investments Marketable securities and other investments Total investment assets Property, plant and equipment, net Goodwill and other intangible assets Total assets Current liabilities Long-term debt Other liabilities and deferred taxes Total liabilities Total shareholders' equity Total liabilities and shareholders' equity 20X2 $1,611 201 1,798 1,076 1,794 6,480 6,442 350 2124 8,916 4,2671 1.960 $21,623 9,856 8541 1,400 12.110 9,513 $21,623 20X1 $1,648 159 1,666 890 2.017 6,3801 6,291 395 1.863 8,549 3,669 547 $19.145 8,640 6871 1,4151 10.742 8,4031 $19.145 Calculate C Co's return on equity (ROE) for 20X2. Multiple Choice O 25.6% O 31.8% 27.1% 30.9%

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