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 return on equity ratio 2016 for FoodValu?
A) 21.48%
B) (61.89)%
C) (152.83)%
D) Not enough information is 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 return on equity ratio 2016 for FoodValu?
A) 21.48% 
B) (61.89)% 
C) (152.83)% 
D) Not enough information is provided

Quizplus · Accepted Answer

ROE = Net income / Average stockholders' equity
= $ (2,080) / [($4,042+ $2,680)/2] = $ (2,080) / $3,361 = (61.89)%
Stockholders' equity 2016 = $24,106 - $20,064 = $ 4,042
Stockholders' equity 2015 = $27,516 - $24,836 = $ 2,680

Use the Following Information to Answer Questions Below