The following information was taken from the financial statements of Collin's Inn: Total current assets
$162,000
Average owner's equity
148,000
Beginning inventory
32,000
Ending inventory
36,000
Cost of goods sold
165,000
Net income
37,000

The return on owner's equity for Collin's Inn is

Question

The following information was taken from the financial statements of Collin's Inn: Total current assets
$162,000
Average owner's equity
148,000
Beginning inventory
32,000
Ending inventory
36,000
Cost of goods sold
165,000
Net income
37,000
​
The return on owner's equity for Collin's Inn is

Quizplus · Accepted Answer

Return on owner's equity is calculated as (Net Income / Average Owner's Equity) * 100. For Collin's Inn, it is (37,000 / 148,000) * 100 = 25%.

The Following Information Was Taken from the Financial Statements of Collin's