The financial statements of Black Barn Company are given below
-Refer to the financial statements of Black Barn Company.The firm's return on equity ratio for 2009 is _____.

Question

The financial statements of Black Barn Company are given below 
-Refer to the financial statements of Black Barn Company.The firm's return on equity ratio for 2009 is _____.

Quizplus · Accepted Answer

The return on equity ratio is calculated by dividing net income by shareholders' equity. For 2009, Black Barn Company's net income was $1,000,000 and its shareholders' equity was $6,000,000. Therefore, the return on equity ratio for 2009 is $1,000,000/$6,000,000 = 16.67%.

The Financial Statements of Black Barn Company Are Given Below