Use the following information to answer questions below
Data from the financial statements of The Grocer Company and FoodValu, Inc., two national grocery chains are presented below:

-To the nearest hundredth of a percent, what is the 2016 return on equity ratio for The Grocer Company?
A) 4.00%
B) 13.11%
C) 8.75%
D) Not enough information provided

Question

Use the following information to answer questions below
Data from the financial statements of The Grocer Company and FoodValu, Inc., two national grocery chains are presented below:
 
-To the nearest hundredth of a percent, what is the 2016 return on equity ratio for The Grocer Company?
A) 4.00% 
B) 13.11% 
C) 8.75% 
D) Not enough information provided

Quizplus · Accepted Answer

ROE = Net income / Average stockholders' equity
= $ 1,204 / [($16,932+ $ $10,596)/2] = $1,204 / 13,764= 8.75%
Shareholders' equity 2016 = $46,952 - 30,020 = $16,932
Shareholders' equity 2015 = $47,010 - 36,414 = $10,596

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