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The Accessories Outlet has total equity of $257,000, sales of $508,000, total assets of $610,000 and a profit margin of 3.5 percent. What is the return on equity

Respuesta :

Zviko

Answer:

6.92%

Explanation:

Return on Equity = Net Income / Total Shareholders Funds × 100

Where,

Net Income = Sales × profit margin

                   = $508,000 × 3.5 %

                   = $17,780

Therefore,

Return on Equity = $17,780 / $257,000 × 100

                            = 6.92%

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