The following information was available for the year ended December 31, 2019: $$\begin{array} { l r }
\text { Sales } & \$ 300,000 \
\text { Net income } & 50,000 \
\text { Average total assets } & 750,000 \
\text { Average total stockholders' equity } & 500,000
\end{array}$$ ROE for the year ended December 31, 2019 was:
A)6.7%
B)10.0%
C)16.7%
D)20.0%

Question

The following information was available for the year ended December 31, 2019: $$\begin{array} { l r } 
\text { Sales } & \$ 300,000 \
\text { Net income } & 50,000 \
\text { Average total assets } & 750,000 \
\text { Average total stockholders' equity } & 500,000
\end{array}$$ ROE for the year ended December 31, 2019 was:
A)6.7%
B)10.0%
C)16.7%
D)20.0%

Quizplus · Accepted Answer

ROE = Net income / Average total stockholders' equity= 50,000 / 500,000= 10%

The Following Information Was Available for the Year Ended December