Answer:
RETURN ON EQUITY 21,17%
$942,000/$4,450,000 = 21,17%
Explanation:
The ROE let see if the investors are getting a good return on their investment., while the company can measure how efficiently they are in the use of the equity.
2009 2010 BALANCE SHEETS
$125,000 $230,000 Cash
$1.030,000 $870,000 Accounts Receivable
$1.745,000 $2.060,000 Inventory
$2.900,000 $3.160,000 TOTAL CURRENT ASSETS
$3.740,000 $3.500,000 Property and Equipment
$3.740,000 $3.500,000 TOTAL NONCURRENT ASSETS
$6.640,000 $6.660,000 TOTAL ASSETS
$1.630,000 $1.580,000 Accounts Payable
$1.630,000 $1.580,000 TOTAL CURRENT LIABILITIES
$830,000 $630,000 Long-Term Debt
$830,000 $630,000 TOTAL NONCURRENT LIABILITIES
$2.460,000 $2.210,000 TOTAL LIABILITIES
$3.280,000 $3.300,000 Common Stock
$900,000 $1.150,000 Retained Earnings
$4.180,000 $4.450,000 TOTAL SHAREHOLDERS SEQUITY
$6.640,000 $6.660,000 TOTAL EQUITY & LIABILITIES
