Wholesale Grocer's has total assets of $580,000 and total liabilities of $375,000.Net sales for the year are $523,000 and the profit margin is 10.5 percent.What is the return on equity?
A) 10.6 percent
B) 26.8 percent
C) 31.2 percent
D) 37.4 percent
E) 44.6 percent

Question

Quizplus · Accepted Answer

Return on equity = (0.105 × $523,000) / ($580,000 - $375,000) = 26.8 percent

Wholesale Grocer's Has Total Assets of $580,000 and Total Liabilities