Question 2
Use the information provided to analyze the profitability of SDHS Co using the following ratios: return on equity
Sales $ 350,000
Gross profit 206,500
Net income 115,000
Interest expense 2,875
Average total assets 875,000
Average total shareholders' equity 500,000
Weighted-average common shares outstanding 25,000
The return on equity is?
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Explanation:
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Answer:
23%
Explanation:
net income/shareholders equity
115000/500000= 0.23
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