Cordoza Corporation had profit of $ 400,000 in 2021. Total shareholders' equity was $ 1,400,000 at December 31, 2019; $ 1,500,000 at December 31, 2020; and $ 1,600,000 at December 31, 2021.
Instructions
Calculate return on equity for 2021 and explain what it means.

Question

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The Answer of Cordoza Corporation had profit of $ 400,000 in 2021. Total shareholders' equity was $ 1,400,000 at December 31, 2019; $ 1,500,000 at December 31, 2020; and $ 1,600,000 at December 31, 2021.
Instructions
Calculate return on equity for 2021 and explain what it means.

Cordoza Corporation Had Profit of $ 400,000 in 2021