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Firm L had net assets at the end of the year of $350,000. The only transactions affecting stockholders' equity during the year were net income
Firm L had net assets at the end of the year of $350,000. The only transactions affecting stockholders' equity during the year were net income of $67,000 and dividends of $37,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Average Stockholders' Equity + 1 = Average Stockholders' Equity + = Return on Equity Return on Equity 1 Firm L had net assets at the end of the year of $350,000. The only transactions affecting stockholders' equity during the year were net income of $67,000 and dividends of $37,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Average Stockholders' Equity + = Average Stockholders' Equity + 0 Dividends 1 Ending stockholders' equity Return on Equity 1 Net income 0 Firm L had net assets at the end of the year of $350,000. The only transactions affecting stockholders' equity during the year were net income of $67,000 and dividends of $37,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Average Stockholders' Equity + = Average Stockholders' Equity 1 1 0 Return on Equity 1 = Return on Equity Average stockholders' equity Beginning stockholders' equity Dividends Ending stockholders' equity Net income 1 0
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