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Savelots Stores' current financial statements are shown below: Balance Sheet: Inventories $500 Accounts payable $100 Other current assets 400 Short-term notes payable 370 Net equipment

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Savelots Stores' current financial statements are shown below: Balance Sheet: Inventories $500 Accounts payable $100 Other current assets 400 Short-term notes payable 370 Net equipment 370 Common equity (100 shares) 800 Total assets $1,270 Total liab. and equity $1,270 Income Statement: Sales $2,000 Operating costs 1,843 Operating income 157 Interest 37 EBT 120 Taxes (40%) Net income $72 48 What's return on equity? a. 5.6796 b. 3.696 C. 19.6396 d. 996

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