FGT Motorsports had net assets at the end of the year of $320,000.The only transactions affecting stockholders' equity during the year were net income of $51,000 and dividends of $11,000.
Required:
Calculate FGT Motorsports' average stockholders' equity and return on equity (ROE).

Question

Quizplus · Accepted Answer

The Answer of FGT Motorsports had net assets at the end of the year of $320,000.The only transactions affecting stockholders' equity during the year were net income of $51,000 and dividends of $11,000.
Required:
Calculate FGT Motorsports' average stockholders' equity and return on equity (ROE).

FGT Motorsports Had Net Assets at the End of the Year