Wichita,Inc.reported the following amounts on its financial statements prepared as of the end of the current accounting period:

-What is the company's return-on-equity ratio?
A)5%
B)10%
C)20%
D)50%

Question

Wichita,Inc.reported the following amounts on its financial statements prepared as of the end of the current accounting period:
 
-What is the company's return-on-equity ratio?
A)5% 
B)10% 
C)20% 
D)50%

Quizplus · Accepted Answer

Return-on-equity ratio = Net income ÷ Total equity
Return-on-equity ratio = $20,000 ÷ $100,000 = 20%