The Foundational 15 [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6]

[The following information applies to the questions displayed below.]

Markus Companys common stock sold for $2.25 per share at the end of this year. The company paid a common stock dividend of $0.45 per share this year. It also provided the following data excerpts from this years financial statements:

	Ending Balance		Beginning Balance
Cash	$	29,000	$	44,800
Accounts receivable	$	50,000	$	43,800
Inventory	$	48,100	$	50,000
Current assets	$	127,100	$	138,600
Total assets	$	375,000	$	360,000
Current liabilities	$	51,000	$	36,000
Total liabilities	$	100,000	$	90,000
Common stock, $1 par value	$	108,000	$	108,000
Total stockholders equity	$	275,000	$	270,000
Total liabilities and stockholders equity	$	375,000	$	360,000

	This Year
Sales (all on account)	$	550,000
Cost of goods sold	$	319,000
Gross margin	$	231,000
Net operating income	$	93,500
Interest expense	$	5,500
Net income	$	61,600

rev: 05_25_2017_QC_CS-89969

Foundational 15-5

5. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%.)

return on equity percentage: