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Use the following information to answer this question. Bayside, Inc. 2017 Income Statement ($ in thousands)Net sales$5,940Cost of goods sold4,190Depreciation355Earnings before interest and taxes$1,395Interest paid31Taxable

Use the following information to answer this question.

Bayside, Inc.

2017 Income Statement

($ in thousands)Net sales$5,940Cost of goods sold4,190Depreciation355Earnings before interest and taxes$1,395Interest paid31Taxable income$1,364Taxes409Net income$955

Bayside, Inc.

2016 and 2017 Balance Sheets

($ in thousands)2016201720162017Cash$110$215Accounts payable$1,555$1,475Accounts rec.970810Long-term debt800600Inventory1,6852,030Common stock3,2203,270Total$2,765$3,055Retained earnings8701,120Net fixed assets3,6803,410Total assets$6,445$6,465Total liab. & equity$6,445$6,465

What is the return on equity for 2017?

Multiple Choice

  • 21.75%
  • 22.55%
  • 23.35%
  • 14.77%
  • 31.07%

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