Table 3.2
Dana Dairy Products Key Ratios Income Statement
Dana Dairy Products
For the Year Ended December 31,2019 Balance Sheet
Dana Dairy Products
December 31,2019
-The return on equity for Dana Dairy Products for 2019 was ________.(See Table 3.2)

Question

Table 3.2
Dana Dairy Products Key Ratios  Income Statement
Dana Dairy Products
For the Year Ended December 31,2019  Balance Sheet
Dana Dairy Products
December 31,2019 
-The return on equity for Dana Dairy Products for 2019 was ________.(See Table 3.2)

Quizplus · Accepted Answer

The formula for return on equity is net income divided by common equity. Looking at the income statement and balance sheet provided in Table 3.2, we can calculate net income as $1,680,000 and common equity as $30,000,000, which gives us a return on equity of 5.6 percent (rounded to one decimal place). Therefore, the best choice is B.

Table 3.2 Dana Dairy Products Key Ratios Income Statement